Research On The Motivation And Performance Of Continuous Mergers And Acquisitions Of TCL Technology Group Co.,Ltd

Since 2014,the domestic M&A market has ushered in rapid development,and the number and scale of transactions have repeatedly reached new highs,becoming the second largest M&A market in the world,second only to the United States.According to Pricewaterhousecoopers’ China M&A Market Review 2021 and Outlook2022 report,the number of M&A deals in China reached a record high of 12,790 in2021,up 21 percent from 2020.PWC expects Chinese dealmaking to continue at a high level in 2022.More and more enterprises choose merger and acquisition as their strategy.In order to enhance the competitiveness of enterprises,the implementation of continuous mergers and acquisitions has become the norm.It is worth discussing the motivation of the implementation of continuous mergers and acquisitions and whether continuous mergers and acquisitions bring value creation to enterprises.This paper uses economies of scale theory,market power theory,synergistic effect theory and resource-based theory to analyze the motivation for TCL Technology Group to carry out continuous M&A in the electronics industry.The external motivation is the mature domestic M&A market,fierce industry competition and government policy support,and the internal motivation is to improve the industrial chain and enhance the competitiveness of the enterprise.Integrate resources to play a synergistic role and develop foreign markets.Secondly,based on the relevant theories and methods of the long-term and short-term events research method,the long-term and short-term performance of the implementation of successive M&A is analyzed and discussed.Two-thirds of the M&A events have a good short-term market response,and the data of 25 months after the M&A shows that the BHAR < 0indicates that the long-term market response is not good.By means of the four dimensions covered by the balanced scorecard,namely,the financial dimension,the customer dimension,the internal process dimension and the learning and future development dimension,the performance is evaluated.Conclusions are drawn as follows: In addition to the solvency,the financial dimension has been improved to some extent,market share and brand recognition have also been further improved,internal process efficiency has also been improved,and the development ability of the enterprise has been enhanced.This paper summarizes the research conclusions and proposes to enhance the absorption capacity and enhance the market competitiveness;Reasonable choice of merger and acquisition object,avoid blind expansion;Pay attention to the integration after the merger,play the synergistic role;The four inspirations of rational utilization of talents and ensuring competitive advantage provide reference for other enterprises in the industry.The innovation points of this paper are as follows: First,most Chinese scholars focus on the entertainment industry,while there are few researches on the electronics industry.Therefore,taking TCL Technology Group as an example to study the motivation and effect of the continuous mergers and acquisitions in the electronics industry,it can fill the research gap in the domestic academia on the continuous mergers and acquisitions in the electronics industry.Second,based on the perspective of balanced scorecard,the acquisition performance of TCL Technology Group is evaluated.From the perspective of balanced scorecard,performance evaluation is not only limited to financial dimension,but also can be comprehensively evaluated from customer dimension,internal process dimension,learning and growth dimension.