| Since the 1980s,there has been a frenzy of mergers and acquisitions in China’s capital market.Most listed companies choose to expand their market scale and enhance their industry competitiveness by means of mergers and acquisitions.According to practical experience,although the synergy effect brought by merger and acquisition can promote the market to a certain extent,some companies are affected by risk factors such as "merger but not integration" and failure to fulfill performance promises as agreed after merger and acquisition,which lead to a series of problems such as insufficient business integration and out-of-control management of subsidiaries,resulting in profit loss for both sides of merger and acquisition.Instead,it is a drag on otherwise well-developed businesses.Therefore,a reasonable VAM can not only guarantee the future business performance of the acquirer,avoid the transaction risk to the maximum extent,but also generate corresponding restrictions and incentives for the acquirer.So the VAM is now widely used as a kind of "self-insurance" mechanism in the merger and reorganization activities.Based on the perspective of VAM,this paper discusses the performance of China Trans Info Company’s acquisition of Uniview.After a thorough understanding of this article research background,first determine the problems and research methods to study in the paper,and then about the bet on M&A theory concept and literature.Combined with the current research status at home and abroad,this case is introduced in detail with China Trans Info Company’s merger and acquisition of Uniview and the signing of the VAM as the entry point.Secondly,from the financial dimension,using the event study method,EVA index method and entropy method to analyze the short-term,medium and long-term performance and comprehensive financial indicators of the merger and acquisition event of the Trans Info Company bet.From the non-financial dimension,market value,market share and strategic objectives are selected to evaluate the implementation effect of the event,so as to interpret this case more objectively and comprehensively,so as to provide more valuable reference for the future listed companies to use the VAM in the process of merger and reorganization.Through the analysis of the implementation effect of Trans Info Company’s gambling merger and acquisition,this paper draws the following conclusions: First,having a clear motivation for merger and acquisition is the basis for the success of merger and acquisition.Second,successful bet merger and acquisition is conducive to the rapid development of enterprises.Third,reasonable use of the VAM can achieve a win-win situation for both parties.On the whole,the introduction of the VAM enhances the strategic coordination of both parties,improves the market share,and fully reflects the maximization of the integration value of both parties. |
