Research On Value Creation Of Serial Acquisitions

"Serial acquisitions" in this dissertation refers to multiple acquisitions by one particular enterprise over time.Stigler(1996)who was the winner of the Nobel Prize in economics once said "almost all of the big companies grew up through a certain degree or some form of M&A,and almost no big companies is mainly dependent on internal expansion to grow up." The history of the development of American enterprise shows that serial acquisitions can play an important role in the development of large enterprise to enhance the competitiveness of enterprises.But at present,there are few researches on serial acquisitions at home and abroad.Existing studies mainly focused on the use of event study methods and accounting research methods study the changing trend of serial acquisitions performance with the increase of the number of acquisitions.What is the intrinsic value creation mechanism of serial acquisitions?How to enhance the performance of serial acquisitions continuously?Based on such background,this dissertation attempts to focus on the research on serial acquisitions with the three main topics as followed.Firstly,this dissertation analyzes the meaning,the sub-capabilities and the promotion path of the M&A capabilities.M&A capabilities drive value creation of serial acquisitions.The current research on the M&A capabilities is still in the initial stage.Based on the previous research results,this dissertation uses enterprise capability theory to make new definition of M&A capabilities as well as defines and analyzes sub-capabilities of M&A capabilities,in addition,puts forward the path to improve M&A capabilities.Secondly,what is the intrinsic value creation mechanism of serial acquisitions?This dissertation uses enterprise capabilities theory and acquisition value theory to constructs "two capabilities drive value creation model",combines operational capabilities and M&A capabilities to explain the value creation mechanism of serial acquisitions.Using of "two capabilities drive value creation model" to analyzes the process of Tsingtao Brewery serial M&A,and analyzes the evolution of operational capabilities and M&A capabilities in the process of interaction,and the resulting value creation effect,and confirms that serial acquisitions has "pearl necklace effect".Thirdly,the purpose of serial acquisitions of enterprises with different operational efficiency is the same?And what differ in specific value creation mechanism?This dissertation proposes M&A create value mainly by changing the number of enterprise resources and operational efficiency,and there are two typical serial acquisitions mode:continuous serial acquisition mode and interval serial acquisition mode.Using "two capabilities drive value creation model" to further explain the value creation mechanism of serial acquisitions of enterprises with poor operational efficiency and enterprises with good operational efficiency.The empirical research is used to verify the value creation characteristics of the two different types of enterprise,and carried out a statistical analysis on the value creation result of serial acquisitions.The main innovations of this dissertation are as follows:(1)Gives a new definition of M&A capabilities as well as gives a new classification of sub-capabilities of M&A capabilities,in addition,puts forward the path to enhance M&A capabilities.(2)Constructs "two capabilities drive value creation model" to explain the value creation mechanism of serial M&A.(3)Explains the motivation,value creation mechanism and value creation characteristics of serial acquisitions of enterprises with poor operational efficiency and enterprises with good operational efficiency.(4)Proposes M&A create value by changing the number of enterprise resources and operational efficiency(value creation efficiency).The use of theoretical and empirical analysis,it is verified that there is a certain consistency but not exactly the same results by the two indicators of ROE and EVA study in the calculation of the value of acquisition performance.Using these two indicators jointly analyze the performance of serial acquisitions.ROE measure value creation efficiency,EVA measure value creation quantity,and comprehensive analysis of financial performance of serial acquirers.(5)Proposes two typical serial acquisitions mode in terms of "continuous serial acquisitions mode" and"interval serial acquisitions mode",and analyzes the financial performance of "during serial acquisitions","continuous serial acquisitions" and "interval acquisitions"respectively,relative to the previous research,to get more information of serial M&A financial performance.