Research On Cross-industry M&A Performance Under The Background Of Traditional Enterprise Transformation

Under the background of my country’s deepening of supply-side reforms,traditional enterprises have an increasing demand for transformation and upgrading,and crossindustry mergers and acquisitions occur frequently.At present,more and more traditional enterprises are actively preparing for cross-industry mergers and acquisitions,in order to realize the diversified development of enterprises,and then achieve the goal of business transformation and upgrading.However,as the regulatory environment and policies continue to change,problems and disputes in cross-industry mergers and acquisitions have gradually become prominent.Since it is difficult to formulate criteria for judging the success of cross-industry mergers and acquisitions,companies pay more attention to the performance of mergers and acquisitions in the process of cross-industry mergers and acquisitions.In response to this phenomenon,it is particularly important to deeply explore the performance evaluation and influencing factors of corporate mergers and acquisitions.In this context,this article combs the literature and theories about the related content of corporate M&A performance,starts with typical corporate M&A cases as the starting point,analyzes the overall situation of cross-industry M&A,and explores its main characteristics and existing problems.After conducting the macro analysis,we will focus on the analysis of typical micro-cases of Kingswood M&A Longmen Education: First,we will introduce this case,including the background of the M&A,the main acquirer and the acquired party,and the entire M&A process;secondly,the case analysis part of this article will study this case.Based on the motivations and transaction methods of M&A,the performance evaluation of M&A is carried out from both financial and non-financial perspectives,using financial indicator analysis method,excess return method,DEA data envelopment analysis method and EVA economic value added analysis method,etc.The method evaluated financial performance,and analyzed the non-financial aspects based on the adjustments and performance of the four aspects of business,personnel,technology,and brand after the merger;finally summarized the conclusions and drew enlightenment.Longmen Education’s acquisition of Longmen Education has achieved its own M&A goals and has generally met expectations.The "ink + education" dual core business development model has been formed.The effect of this merger and acquisition transaction is relatively satisfactory.However,we should continue to pay attention to the future development of the education business and pay attention to the maintenance of long-term performance.,While strengthening economies of scale,continue to guard against operating risks,and actively promote the coordinated development of dual core businesses.The research conclusions of this article can be summarized in three points: First,traditional enterprises can realize enterprise diversification,increase corporate profits,and reduce corporate operating risks through cross-industry mergers and acquisitions.In addition,the choice of this M&A path is more feasible;second,when traditional companies conduct cross-industry mergers and acquisitions,there are many factors affecting their performance,mainly including the company’s own development,target company selection,development strategy adjustment,etc.;Third,investors also need to look at the cross-industry mergers and acquisitions of traditional enterprises in a rational manner.The research conclusions of this article can provide reference suggestions for traditional enterprises to realize cross-industry mergers and acquisitions,and provide reference for regulators and investors to treat this merger and acquisition more reasonably.