Research On The Impact Of Continuous Digital M&A Of KehuaHengsheng On Enterprise Value Creation

In recent years,with the rapid iteration and wide application of digital technology,the digital economy has now become a new engine of global economic development.The structural system of most industries has also undergone tremendous changes due to the application of digital technology.The digital transformation of enterprises is imminent.At present,although China’s digital economy has a very strong momentum of development,enterprises still need to overcome many difficulties in the face of the new requirement of digital transformation.In order to overcome the problem of digital transformation,many enterprises choose to carry out digital mergers and acquisitions.Studying the impact of digital M&A on enterprise value creation can analyze how enterprises integrate the resources acquired by M&A and further realize the path of value creation through effective resource arrangement after digital M&A,and also provide corresponding enlightenment for enterprises to complete digital transformation through digital M&A and achieve high-quality development.This paper mainly studies the case of KehuaHengsheng,an electrical machinery and equipment manufacturing enterprise,merging and acquiring companies with digital characteristics,such as Kangbita,TiandiXiangyun,GuangzhouDesheng,etc.,to explore how KehuaHengsheng realizes value creation through continuous digital mergers and acquisitions,and to analyze the value improvement of finance,innovation,and society after enterprise mergers and acquisitions.This paper uses the literature research method to classify and sum up the relevant literature and theories,and extracts the case study framework of this paper;Based on the perspective of resource arrangement,the longitudinal case study method is used to study Kehuahengsheng,a representative company of digital mergers and acquisitions,collect relevant announcements and data of enterprises,analyze the resource arrangement process of the three consecutive stages of single breakthrough,digital business expansion and deepening layout experienced by enterprises in continuous digital mergers and acquisitions,and analyze the impact of digital mergers and acquisitions on enterprise value,This case also provides inspiration for other enterprises to carry out digital mergers and acquisitions.The main innovation of this article is to expand the application of resource arrangement theory in digital M&A,combine multiple digital M&A processes,form a continuous and complete mechanism and conduct a analysis.The study found that under the strategic framework of transformation,enterprises acquire scarce digital resources through digital M&A,integrate the resources acquired through M&A,cultivate their own digital capabilities,and realize value creation through three actions of resource structuring,resource bundling,and resource utilization,and the financial,innovation and social performance of enterprises show positive improvement,indicating that the value creation effect of digital M&A is positive and can improve the high-quality development ability of enterprises.This article can provide the following enlightenment to other enterprises:First,enterprises need to make long-term strategic planning,identify the resource gap,and gradually promote the process of M&A.Second,enterprises should attach importance to the process of resource integration,realize the cultivation of their own digital capabilities,and let digital technology and digital business serve the top strategy.Third,adhere to innovation,pursue high-quality development,and realize the maximization of enterprise value with the development concept of innovation and digitalization.