Research On The Motivation And Performance Of Cross-industry M&A In Traditional Enterprises

Under the background of the simultaneous development of supply-side structural reform and state-owned enterprise reform,the traditional enterprise reform with state-owned capital background can be regarded as a great attention.Some traditional state-owned enterprises,because of the operation of a single traditional business has begun to decline,and even some traditional enterprises are on the verge of bankruptcy and bankruptcy.They urgently need to open up new profit growth points and enhance the profitability of enterprises through mergers and acquisitions of emerging sunrise industries.Among A listed companies,cross-industry M&A cases emerge in endlessly,traditional enterprises through cross-industry M&A to implement diversification,or transformation and upgrading of the original traditional business,gradually become the norm.Sanai Fu,as a traditional fluorine chemical enterprise,successfully transformed into a new field of education through the acquisition of Oweia,is a typical new round of cross-industry M&A cases of traditional enterprises.Analyzing the motivation and performance of M&A has some reference significance for Chinese traditional enterprises to cross-industry M&A.Based on the case study method,this paper studies the process and results of cross-industry M&A,and analyzes its motivation and performance.The motivation of cross-industry M&A is mainly influenced by national policy,external factors of industry development trend,and the internal needs of realizing diversified development of enterprises and preventing delisting.Cross-cutting M&A Performance is mainly divided into short-term,medium-term and long-term performance,from different time dimensions to analyze the effect of the cross-industry M&A.It is found that the performance of Sanai Fu M&A is better,which is beneficial to the improvement of the overall economic benefit of the enterprise,and better promotes the enterprise to achieve the goal of sustainable development.Finally,combined with the characteristics of Sanai Fu,this paper summarizes the enlightenment of cross-industry M&A of traditional enterprises: to correct the motivation of M&A,to attachimportance to long-term sustainable and stable operation,to choose the appropriate M&A industry and target according to its own strength and industry market characteristics,to pay attention to the internal integration after M&A,and to cultivate the core competitiveness of enterprises.