Research On The Effect And Risk Of Enterprise Transformation M&A

The epidemic’s repercussions have caused the world’s macroeconomic state to be feeble and its development atmosphere to be feeble in recent times.Some listed companies hope to adopt market-oriented mergers and acquisitions for industrial expansion and integration in order to achieve leapfrog growth.Nowadays,the network industry has fully penetrated into all fields of economic society.Promoting the modernization of China’s economic and social network,this new carrier of production and life is driving the development of related industries in a continuous manner.Among them,the "home economy" has even pushed it forward.As an important part of the network sector,the game industry has also performed quite strongly in the capital market recently.Mergers and acquisitions have seen some companies in traditional manufacturing or cyclical industries enter the online game field,seeking out new opportunities to realize a transformation and upgrade of their company,altering their strategic business mode,and creating a wave of acquisition in the online game domain.However,it is still unclear whether the enterprise can really complete the strategic transformation and improve the value of the enterprise through acquisition.This paper examines the potential risks and implications of mergers and acquisitions on enterprise performance,as well as the case of Juli Culture’s merger and acquisition of Meishengyuan.It provides an overview of both parties involved in the transaction,and then delves into the theoretical path of such transactions.This paper begins by examining the pertinent literature on mergers and acquisitions from an enterprise transformation viewpoint,exploring the theoretical trajectory of the effect of mergers and acquisitions on enterprise performance,and summarizing the potential risks in the process.Subsequently,it examines the merger and acquisition of Meishengyuan by Juli Culture,and provides a synopsis of the general circumstances of both parties involved.The selection of the case is elucidated,and the merger and acquisition process is scrutinized.Subsequently,the impetus for its alteration is examined from both the policy and enterprise levels,and the alteration of pertinent markers before and after the merger and acquisition is evaluated from the viewpoint of product,management,and market.Then,the main risk issues involved in the case companies in different stages of mergers and acquisitions are studied.Employing the enterprise life cycle theory,information asymmetry theory,resource-based theory and control illusion law,the entire case analysis process is conducted.Subsequently,a summary of the M&A cases is presented,along with research conclusions and pertinent enlightenment.In a word,the risk level faced by Juli Culture in this merger and acquisition is still high.Through the analysis of performance,it can be seen that the M&A enterprise has not completed its strategic transformation goal,and there is no reasonable risk response measures.Consequently,businesses ought to first construct a sensible administration framework and establish relevant risk supervision departments when transforming to businesses with large span;Secondly,many factors should be taken into account when valuing the target enterprise,and its development prospects should not be too optimistic;Finally,after M&A,enterprises should make timely adjustments in line with the new strategic development direction,so as to achieve transformation and upgrading as soon as possible.