| In recent years,the vitality of China’s Internet development has been further released,and the level of infrastructure construction,Internet technology innovation,digital economy industry,digital society development and digital government construction has been significantly improved,and the Internet has become an important engine to drive economic transformation and social change.The Internet industry,as a key field supported by the state,has developed rapidly in recent years,while many M&A cases have emerged.in September 2019,Alibaba wholly acquired Kaola for USD 2 billion,which will mean that Kaola will become a new driving force for Alibaba’s development in the field of cross-border e-commerce.In this paper,we analyze the motivation of Alibaba’s acquisition of Kaola,and then explore the impact of the acquisition on Alibaba’s performance,hoping to provide some references and insights for future M&A activities of Internet companies.The research idea of this paper is to apply various synergy evaluation methods to analyze the case of Alibaba’s acquisition of Kaola in a comprehensive manner.The focus of this paper is on the synergy analysis of Alibaba’s acquisition of Kaola.Firstly,we analyze the motivation of Alibaba’s acquisition of Kaola against the background of the rapid development of the Internet and frequent mergers and acquisitions,so as to lay the groundwork for the following analysis.For this purpose,this paper uses a combination of four methods: event study method,financial index method,non-financial index method and EVA evaluation method to conduct the analysis.The event study method is used to evaluate the capital market’s reaction to the fluctuation of the company’s share price and shareholders’ interests in the short term;the financial indicator method is used to analyze the financial performance of Alibaba,the acquirer;the non-financial indicator method is used to evaluate whether the company’s own development after Alibaba’s acquisition of Kaola is in line with the expectations of the acquisition;and finally,the EVA method is used to analyze whether the acquisition has Finally,EVA is used to analyze whether the acquisition brings real value growth to the company.The combination of these four approaches makes this paper a more comprehensive and objective study of the synergistic effects of this acquisition.The study and analysis found that,after Alibaba completed the acquisition of Kaola,in the short term,Alibaba’s stock price fluctuated and showed an upward trend,indicating that this M&A action had attracted the attention of the stock market;in the medium and long term,Alibaba’s asset management level,development capacity,profitability and other related indicators showed an increasing trend,realizing financial synergy,management synergy and operational synergy effect;from the economic value-added perspective,positive value growth was achieved and the growth rate was fast;from a non-financial perspective,Alibaba achieved good scale benefits,enhanced brand value,improved supply chain bargaining power and realized its M&A objectives.Therefore,overall,Alibaba’s acquisition of Kaola has achieved the synergy effect of "1+1>2".At the same time,with the analysis of the case,we suggest the right M&A strategy,post-merger integration,flexible and appropriate payment methods,and the right timing for M&A. |
