The Performance Evaluation Of Will’s "Snake Swallowing Elephant" Merger And Acquisition

Semiconductor industry is the modern national key development of the emerging industry,with the increasingly extensive demand for semiconductor high-tech industry,the overall scale of semiconductor industry rapid expansion,semiconductor enterprises ushered in a period of rapid development.However,due to the late start of semiconductor technology development in China and the high technical barriers caused by foreign technology blockade,more and more domestic semiconductor enterprises encounter development bottlenecks,hoping to break through technical barriers and expand enterprise scale and market share to cope with the increasingly fierce market competition through mergers and acquisitions under the background of national policy support."Snake swallowed elephant" M&A is widely popular in M&A mode due to its advantages of expanding its scale,increasing market share and acquiring technology and talents in a short period of time.Different from conventional M&A events,such special economic events as "snake swallowed elephant" M&A have wider and deeper effects on enterprises’ performance results.Both financial dimension and non-financial dimension have a large degree of influence,but traditional performance analysis tools are difficult to fully quantify the key performance indicators of non-financial dimension,so it is necessary to build a scientific M&A performance evaluation system,comprehensive and multi-level evaluation of the "snake swallowing elephant" M&A event performance impact.By studying domestic and foreign literature,this paper takes the case of Will’s "snake swallowed elephant" merger and acquisition as the research object,expounds and analyzes the process of merger and acquisition,financing methods,and deeply analyzes the motivation of merger and acquisition.In order to effectively test the performance results of Will’s "snake swallowed elephant" merger and acquisition from a comprehensive and multi-level perspective,this paper chooses to start from the perspective of balanced scorecard.It quantitatively analyzes the performance changes of four dimensions before and after M&A,and constructs the M&A performance evaluation system to measure the difficulty in quantifying the performance evaluation indicators and make the M&A performance results more intuitive.The weight of each index of the evaluation system is confirmed by the analytic hierarchy process,and the performance evaluation of M&A is divided into financial and non-financial aspects by using the efficiency coefficient method and fuzzy comprehensive evaluation method.After the merger and acquisition,Will’s financial dimension,customer dimension and learning and process dimension have been greatly improved,which has laid a profound foundation for Will to become a world leader in this field in the future.Will has well inherited the technology,customer and talent resources of Beijing Howwell through the merger and acquisition.However,in the dimension of learning and growth,there are some problems such as insufficient matching between cost and benefit,which need to be improved.Through the case analysis of Will Stock merger and acquisition,the following suggestions for semiconductor company merger and acquisition are obtained: First of all,it is necessary to clarify the development strategy of the enterprise and determine the acquisition target according to the future development strategy of the enterprise.Secondly,it is necessary to pay attention to the preliminary investigation,make a reasonable plan and choose the right way to carry out the merger plan.Finally,after the completion of the merger and acquisition,it is necessary to deepen the merger and integration and enhance the synergy effect,so as to achieve the merger and acquisition strategy.