A Study On The Performance Of Vertical Integration-oriented M&A

The report of the 20th National Congress of the CPC points out that high-quality development is the primary task of building a modern socialist country in an all-round way.To promote high-quality development,we need to achieve effective qualitative and quantitative growth.Based on the rational growth of quantity,the effective promotion of quality as a driving force,the two complement each other,and together constitute a high-quality development path.In order to seek the high-quality development path,in recent years,our government has carried out a series of strategic layout in various industries,and promoted the development of our country’s industrial structure towards technology-intensive and knowledge-intensive,according to the general law of industrialization development and algorithm,service industry will gradually become the leading industry in the change of industrial structure with the promotion of industrial policy.The medical service industry has welcomed the“Spring Breeze” of this policy,followed by more opportunities and challenges.In order to seek a broader space for development,companies in the industry often expand the company’s industrial scale through external M & A and endogenous construction,build upstream and downstream service integration platform,and enhance the company’s service level,improve customer service satisfaction.As one of the few large R & D service companies in the industry,a company has started the process of Strategic M & A since 2007.The company has rapidly expanded its business area through a series of mergers and acquisitions dominated by vertical integration,it acquires the key technology in the field of segmentation,expands the platform service capacity,perfects the global R & D facilities and strengthens the ability of data statistics and analysis,thus achieving the industrial distribution of coordinated development at home and abroad.In order to study the development of a company in the process of M & A in detail,this paper bases on the existing research results in the related fields of M & A,and combines the concepts of vertical integration,M & A in succession,and synergy,etc.,using case study method,this paper analyzes the related problems of a company’s continuous M & A performance.First of all,this paper classifies the research conclusions of domestic and foreign scholars in the fields of vertical integration,continuous M & A motivation,continuous M & A performance,etc..Secondly,it introduces the general situation of a company and summarizes the continuous M & A process of a company by stages,and evaluates the short-term and long-term performance by event study method and principal component analysis method respectively,from the non-financial point of view,this paper analyzes the synergy of management,operation and technology in detail.The results show that the continuous M & A of Company A has a positive impact on both short-term and longterm financial performance,and also brings significant synergy.It optimizes the efficiency of resource use,broadens the types of business,and makes the cross-regional development of domestic and foreign business.On the whole,the performance of a company’s M & A is fair,so we can draw some enlightenment that a company should make clear the development path of the enterprise and pay attention to the strategic coordination between multiple M & A S before it chooses to carry out M & A,after the merger and acquisition of enterprises to increase the strength of integration.Through this study,I hope to be able to implement continuous M & A strategy for other enterprises in the industry to make appropriate reference and reference.