Research On Value Creation Of Luxshare Precision’s Continuous M&A

Industry is an important foundation for national development,and without strong industrial strength,it is difficult for the country to prosper.However,China’s manufacturing industry is currently only large-scale and has not reached the level of a real power.To realize the transformation and upgrading of the manufacturing industry,it is necessary to rely on the support and innovation of advanced technology.As a way to effectively obtain external technical resources,mergers and acquisitions have become the mainstream form of enterprise resource activities.In recent years,in the electronic components manufacturing industry,more and more enterprises choose to improve their technological innovation capabilities and core competitiveness through mergers and acquisitions.Existing research mainly explores how continuous M&A creates value from static factors such as past historical M&A experience,corporate management and transaction style,while ignoring the dynamic relationship between M&A,and resource allocation theory has not been widely applied in the field of M&A.Therefore,this thesis attempts to analyze how Luxshare Precision achieves value creation through continuous M&A from the perspective of resource orchestration and takes the continuous M&A events of Luxshare Precision from 2010 to2021 as a case.Based on resource orchestration theory and synergy theory,this thesis organizes and summarizes the literature related to continuous mergers and acquisitions,value creation and resource orchestration,and reviews the existing research.On the basis of theoretical and literature support,this thesis sorts out the 17 M&A activities of Luxshare Precision,divides M&A into two stages of horizontal expansion M&A and vertical focus M&A according to the development strategy of the enterprise and the field of M&A target,combines the economic,political and other relevant backgrounds before the M&A occurs,analyzes the value creation process from the three aspects of resource structure,resource bundling and resource utilization in the two stages,and finally quantitatively analyzes the effect of value creation by the financial index method and the economic added value method.Finally,the study concludes that(1)Continuous mergers and acquisitions are one of the effective ways to achieve rapid growth of enterprise performance.(2)In continuous M&A,focusing on the main business and reasonably selecting the target of M&A is conducive to cultivating sustainable competitive advantage.(3)In order for continuous mergers and acquisitions to succeed,it is necessary to flexibly bundle the resources accumulated in the resource stage.It is hoped that the findings of this thesis can shed some light on the continuous mergers and acquisitions of electronic component manufacturing enterprises and similar private enterprises in China to create value.