Research On Value Creation Of Continuous M&A Of Enterprises From The Perspective Of Industrial Chain

Continuous mergers and acquisitions are a hot issue under the development of China’s capital market,and its impact on enterprise value creation has attracted attention from all parties.At the same time,from the perspective of industrial chain integration,the issue of continuous mergers and acquisitions of enterprises is a new perspective in recent research,and the opportunities and challenges contained in it are worth in-depth study.The new material industry is a strategic emerging industry for national development and the cornerstone of China’s economic development.In the fields of mergers and acquisitions and new materials,the state has also successively introduced corresponding policies.Therefore,continuous mergers and acquisitions have shown a good development trend in the market,industry and national policies,making continuous mergers and acquisitions in the new material industry gradually become a hot spot for research.Taking Chinese Ceramic Materials as an example,this article first describes the development background of the case company and the development status of the industry.Secondly,combined with the theory of synergy effect,transaction cost theory,market power theory and diversified operation theory,the motivation and industrial chain layout path of case companies for continuous mergers and acquisitions are analyzed.Finally,the impact of continuous M&A on enterprise value creation is explored.Finally,it is concluded that: first,in terms of short-term effects,75% of the M&A events of Sinocera Materials show positive returns in the short term,and 25%of the M&A events show a downward trend in the market performance in the short term.Second,in terms of long-term effects,the four major capability indicators of national porcelain materials have been improved to varying degrees,which has brought positive effects to enterprises.Third,from the perspective of non-financial value creation,through continuous mergers and acquisitions,Sinocera Materials has enriched business types,integrated internal processes,expanded brand effect,and then improved the value of the company’s resource integration.At the same time,by improving its own research and development capabilities and optimizing the personnel structure,the competitiveness of Chinese ceramic materials in the same industry has been greatly improved.In order to prevent potential risks that may arise from successive mergers and acquisitions,this article makes the following suggestions: First,listed companies should improve the payment scheme at the time of mergers and acquisitions to reduce the company’s financial risks.Secondly,in order to minimize the risk of goodwill impairment,the company should carry out goodwill impairment tests in a timely manner to reduce the risk.Finally,when carrying out successive mergers and acquisitions,companies should focus on strengthening the integration of resources between enterprises to achieve synergies.