Research On Technology M & A Mode And Performance Of High-Tech Enterprises In China

Technology M&A (Merge & Acquisition) has become one of the most important means that enterprises acquire external technological. In recent years, many enterprises at home and abroad seek fast development by the way of technology M&A. The universal upsurge of enterprise technology M&A is under way. High-tech enterprise is a typical R&D driven enterprise. In the latest M&A upsurge, more and more high-tech enterprises make use of M&A to acquire related technology and knowledge assets, build, reinforce or enhance technical ability. Meanwhile, acquiring external new technology and product also becomes one of the basic factors of high-tech enterprises carrying out M&A activity, which also attracts scholars'attention. For thirty years, high-tech enterprise develop rapidly and make great achievement in China. However, high-tech enterprise encounters the bottleneck for its development relies on raw materials with high intensity, money and manpower. Therefore, development mode is anxious for changing. The abundant fund accumulated by long term high-speed development has provided the possibility for high-tech enterprise technology M&A, which can enhance the technical level and ability. High-tech enterprises also make a great effort in technology M&A field. Technology M&A of some companies achieved great results. Some enterprises' operating declined and its competitive also decreased by technology M&A. Many theoretical and practical problems of technology M&A are worth researching deeply. Research on technology M&A behavior and main factors that influence performance is still far behind the development of practice in China, which surely leaves some space for the study on the field of M&A.High-tech enterprises are chosen as the research target. Literatures in the field of technology M&A at home and abroad are reviewed. On the base of status analysis and literature study, this paper mainly discuss the technology M&A theory model and technology performance. Technology M&A performance and M&A comprehensive performance are discussed in different M&Amodels. Through a lot of analysis and integration high-tech enterprises M&A activity are summarized as market entry, complementary enhanced, fusion innovation, control development and technical defense. Also characteristic and practicability of every M&A mode are studied. Technology M&A performance is studied from two view point:technical performance and comprehensive performance in this paper. First of all, technical performance in 63 high-tech enterprise M&A during 2000 to 2005 is evaluated by Malmquist index model. Then, technical performance is used as one of the technical synergy of enterprise acquisition. This synergy combining financial synergies, management synergies and business synergies improve traditional balance scorecard model to establish comprehensive performance evaluation model of high technology enterprise technology acquisition. Comprehensive performance of each year is calculated by rough method. On the basis of comparing high-tech enterprise performance of each model with comprehensive performance, factors of affecting M&A performance are analyzed by the multiple regression analysis and illustrated through the technology M&A case of Shenzhen SUNLORD.The main contributions can be formulated as follows:First of all, a multi-object decision-making model based on dominance-rough set theory is constructed to offer pattern selection of technology M&G for high-tech enterprise. The model helps enterprise know applicability of M&A modes on technology M&A and choose the right mode in some competitive environment. The success rate of M&A is advance and technological level of the acquiring corporation is upgraded by technology M&A. The study of high-tech enterprise M&A mode theory shows that enterprise should carry out technology M&A by choosing the appropriate mode, which realize the M&A strategic intent smoothly according to its internal competition environment factors (technical ability and market share) and external market environment (market growth).Secondly, DEA is utilized to compute Malmquist index, technology efficiency, technology progress index and total factor productivity. Technical performance appraisal is discussed based on quantification model. The main factors influencing the performance of the acquiring corporation are analyzed. Technology M&A activity has obviously promoted the enterprise technology progress index; especially the function of perfecting the promotion of technology M&A to the enterprise technological progress index is most obvious. Market access technology M&A can reduce the ratio of technical staff accounting for enterprise staff in the second year after M&A.Thirdly, improved BSC model is presented based on the theory of M&G synergistic effect and is utilized to evaluate technical performance. Index system of performance evaluation to High-tech enterprise is study on Based on improved BSC model. Weight of each index is obtained based on rough set theory. Then comprehensive evaluation model of High-tech enterprise performance is constructed. The results of the studies are listed as follows:Market access M&A caused the comprehensive performance of enterprise declined. Complementary enhanced M&A can ascend the enterprise's overall performance slightly. And perfect technology M&A can obviously promote enterprise comprehensive performance..Fourth, seeing from the M&A events of 63 high technology listed companies during the period of 2000 to 2005 for the main purpose of technology M&A, the influence of technical M&A activity to the enterprise comprehensive performance is not very clear. Different M&A mode has different effect on the comprehensive performance of enterprises. Market access M&A caused the comprehensive performance of enterprise declined. Complementary enhanced M&A can ascend the enterprise's overall performance slightly. And perfect technology M&A can obviously promote enterprise comprehensive performance.This paper is based on the theory of enterprise technology M&A modes and performance theory and probe the influence of high technology enterprises'M&A to the levels of enterprise performance from two aspects of M&A mode and events. The first level shows the influence of enterprise M&A mode to enterprise comprehensive performance and technical performance. The second level shows the influence of other factors (such as enterprises characteristics) to technology M&A performance,such as the improved effect of the enterprise's technical level, the return on assets (ROA), technical staff ratio, intangible assets, undistributed profits, assets, equity concentration before merger to technology merger performance and the reduced effect of the proportion of technical staff accounting for all employees and administrative expenses to the technical M&A performance. These studies not only enrich the study perspective of high technology enterprises'technology M&A, but also expand the relationship study between high technology enterprise strategic orientation and the technology upgrades. Finally, it pointed out the deficiency of this paper and the future research direction.