Motivation And Performance Analysis Of M&A Under The Background Of Strategic Transformation

With the development of economic modernization,the traditional manufacturing industry has been constantly impacted by the intelligent level.Our country has vigorously promoted the transformation and upgrading of traditional industries.Under the development requirements of the times,strategic transformation has become an effective way for traditional enterprises to enhance their competitiveness.However,focusing on new areas to establish a comparative advantage to promote the development of various business is not easy.In recent years,our country policy and the market environment unceasingly optimized,the merger and acquisition has become the enterprise to grow strong,enters the industrial domain rapidly the important means.In 2021,the state proposed and implemented the 14 th Five-Year Development Plan,and government departments increasingly attached importance to the supporting role of the real economy,including the basic manufacturing industry,in the overall economic pattern,so as to enhance the comparative advantage of China’s manufacturing in the global economy.The semiconductor industry is a strategic emerging industry with broad prospects.Many enterprises through mergers and acquisitions,learning advanced technology,access to more quality resources,enhance core competitiveness.This paper takes TCL Technology’s M&A of Central Group as the research object.This M&A case is a typical case of SOE reform in semiconductor industry.TCL Technology acquires relevant technical resources,integrates resources,exerts synergistic effects,enters the track of semiconductor photovoltaic and semiconductor materials,implements the strategic planning of the enterprise in the overall development of the company,and gradually improves the industrial ecology.In this paper,the research background,research significance,research content and so on,from the strategic transformation,strategic M&A motivation and performance of the three related literature.Secondly,this paper uses the synergy effect theory,the market power theory and the enterprise life cycle theory to construct the theoretical basis.Thirdly,using SWOT analysis method,this paper explores the performance of M&A from four aspects: external opportunities and challenges,internal strengths and weaknesses.This paper analyzes the short-term performance of TCL M&A Central Group by using the event research method,and analyzes the financial dimension,customer dimension,internal process dimension and learning and growth dimension.Finally,according to the above analysis results,the paper summarizes the power source and synergy effect of TCL M&A,and puts forward corresponding suggestions.Through the case analysis of TCL Technology M&A of Central Group,we can see that the main motivation of TCL Technology M&A of Central Group is policy support,regional layout,similar business structure and synergy.By streamlining the complex business structure,focus on semiconductor display business,achieve the strategic objectives of enterprises.TCL Technology Mergers and Acquisitions Central Group has certain positive market effects and has a relatively positive impact on financial performance.It also increases R&D investment,attaches importance to the introduction of talents,and its business scale develops rapidly,thus preliminarily realizing its strategic objectives.But the company still has too high asset-liability ratio,weak solvency,resource integration to be optimized,competitive pressure and other challenges.Combined with cases,this paper proposes to focus on strategic guidance,control financial risks,optimize asset structure,expand the international market,layout related fields.The hope can promote the enterprise good development,carries on the merger and acquisition to obtain for our country other similar enterprises to provide certain model significance.