Research On Overseas M&A Performance Of Internet Enterprises Based On Balanced Scorecard

After entering the 21 st century,economic globalization is like an irreversible giant ship,which injects a steady stream of vitality into development.However,in the process of "giant ship" sailing,there are also many hidden risks.In order to avoid risks and seek better development in the process of globalization,there are more and more transnational enterprise M & A cases similar to "big fish eat small fish".M & A has begun to become another remarkable feature of economic globalization.Based on the development of Internet technology and the sharp increase in the number of Internet users in the past decade,the online completion rate of people’s daily life has reached nearly 83%,especially in the current epidemic,home office learning is inseparable from the mobile Internet.However,the fierce competition in the entire Internet industry has led enterprises to seek survival in their own way.As a new market with the rapid development of smart phones and mobile Internet,the mobile game market has defeated the PC end game to become the largest cash cow of major manufacturers in just a decade in China.Tencent,as the industry leader,naturally began to adjust its business focus,hoping to seize the market opportunity.However,in the early stage,too much attention was paid to PC end games,resulting in insufficient mobile game development talents,insufficient experience and other problems.The existing strength alone can not meet the development needs,so overseas M & A has become the best way.The research methods used in this paper are literature research,case study and comparative analysis.Through Tencent’s acquisition of supercell,an overseas top mobile game company,as the starting point,EVA is integrated into the financial dimension of the balanced scorecard,trying to make the conclusion of this dimension more three-dimensional.By combing the other three dimensions,the non-financial indicators are more abundant.We also hope to broaden our thinking,so that the analysis of this case is not limited to the financial perspective,but can cut in from multiple dimensions,combine macro and micro,and complete the evaluation.Finally,the conclusion of this case and the experience and summary of cross-border M & A of the same type of enterprises in the new era are drawn from these four aspects.Through analysis,it is found that the M & A has brought a positive impact on the development of Tencent in general,and the indicators of all dimensions have been improved to varying degrees.In the short term,Tencent’s large payment in the first phase has put some pressure on its solvency in the year of M & A,but in the next year,its solvency and profitability have improved,and its operating capacity is generally stable.Tencent’s acquisition of supercell has not only reaped a large number of users in China,but also opened up overseas markets.It has achieved ideal results in user expansion,which is the cornerstone of supporting revenue.However,the negative impact of overseas M & A can not be ignored.The overall valuation of Tencent’s M &A is higher than the market premium,which led to the backbone employees of the acquiree selling their shares and leaving the company,leaving Tencent missing some elite talents.To sum up,this case has a lot to learn from the overseas M & A of the same type of enterprises,but before the action begins,it is necessary to make full research preparation,find out the market situation,and select the appropriate financing payment method to maximize the benefits.