A Case Study On M&A Motivation And Performance Among The Listed Companies In TMT

Although Chinese economic growth was slowing, TMT industry still kept a tremendous enthusiasm in mergers and acquisitions market. On the one hand, due to the national economic structure transformation, M&A market continue to remain active.On the other hand, with the gradually establish the status of TMT industry giants and numerous TMT enterprises listed after the eager desire to occupy industry market and seek new profit growth point,"M&A" has become the Chinese keywords in TMT industry.This article selects seven companies that BONC mergered from2013to2015,as the research object, combining market current situation,industry characteristics and company strategic plan,to analyze the motives of enterprise M&A.In terms of M&A performance,we first calculate the CAR by using event study method to evaluate whether M&A produces short-term performance; Then, by using financial analysis method,combined with the m&a motivation m&a analysis whether the merger to achieve,then respectively from the debt paying ability, profitability,operation capacity and growth ability four aspects, study M&A performance in the long run. Through analysis, research whether the merger really brought market performance and operating performance for the enterprise, so as to provide a beneficial reference in the same industry mergers and acquisitions in the future enterprise value and reference.Through this case study we find out that short-term market performance after m&a BONC rise obviously,but the long-term financial performance.While companies mergers and acquisitions to maintain the high speed growth, but in terms of profitability,solvency and operation capacity are decreased.Thus should pay attention to mergers and acquisitions integration risks, improve the efficiency of assets operation, setting up performance agreement,at the same time also to establish the relevant countermeasures and suggestions such as investor risk awareness.