Case Study On Mergers And Acquisitions Performance Of Chinese Computer Industry Listed Companies

In recent years, development of infonnation economy continues to accelerate with policy support. Information security, Internet+concept, and Big data emerged from the market. The information economy is rapidly expanding. Computer science plays an important role in this emerging industry. However, the development of the computer industry is facing bottlenecks decline in endogenous growth. With the industry slowdown, the profit of consolidated statements is more and more important. Mergers and acquisitions (M&A) is an important source of growth in the computer industry performance. With the promotion of the M&A's status, the research on the M&A of the computer industry is more and more important. This paper analyzes the data of the computer industry M&A, mining M&A feature, profit contribution and market heat, and a case study on this basis, to answer the M&A synergies and performance issues.Main contentThis paper is divided into six chapters. Chapter ? is introduction, the first chapter introduces the background, describes the research methods and the expected contribution. By comparing relevant domestic research literature with foreign ones, scholars agree on views such as "emphasis on the synergies in mergers and acquisitions", "the fact that relevant merger performance improvement is more obvious", "the fact that the mergers and acquisitions performance of private enterprises are better than that of state-owned enterprises", "organizational capital integration became an important factor affecting mergers and acquisitions", but these scholars still have large research space on "whether or not the acquisition can improve performance", "whether mergers and acquisitions can reflect more value in the short or long term", and "the performance factors of mergers and acquisitions". These issues will continue to be the focus of future research directions and still have a large research space.Chapter ? is a theoretical analysis defining the concept of M&A motivation and performance. I believe it is necessary to evaluate the performance of M&A with both efficiency and profitability. This article measures performance of M&A from the angle of synergies and earnings growth using synergy analysis, efficiency of M&A, changes in earnings growth analysis, and evaluation of performance. Three M&A performance evaluation methods are stock price movement analysis, financial analysis, and EVA analysis. Changes in stock prices can be measured before and after the acquisition method to grow and market the company's pursuit of the degree of change. Financial analysis method can provide a factual basis for performance evaluation after the merger. It may also assist companies to make decisions before the merger. The long-term accounting data can more comprehensively reflect the performance of mergers and acquisitions. EVA refers to the net capitals gains subtracting cost. EVA analysis can measure how much value is created by management to shareholders.Chapter ? analyzes the situation of mergers and acquisitions of existing companies in the computer industry through statistical analysis computer industry mergers and acquisitions in recent years on the basis of data from computer characteristics, profit contribution and market popularity. This is also to study what drives the computer industry. The Computer Industry Listed Company data for statistical analysis 2011-2015 shows the following conclusions. As the computer industry mergers and acquisitions increase in recent years, the participation rate soars by reaching 71.60% in 2015. In addition, M&A also indicates a dropping failure rate and a notable inertial feature. It has become an important means of maintaining a high growth rate of the industry and occupies the proportion of profits that cannot be ignored. The 2015 overall performance of the computer industry maintains stable. The market for mergers and acquisitions sought at a high rate with high investors' expectations.In Chapter ?'s Ultrapower merging Camel Games and LongtuGame case studies. The computer industry is a typical example of merger transition. Ultrapower Motives mainly enhance the competitiveness of the Internet business. The development of "platform+content operations support services" opens a new business model and new growth points. According to law changes in the stock price evaluation methods, financial analysis, EVA analysis method, quantitative analysis of the synergies from the merger of the contribution and performance issues, we concluded as follows:The acquisition of shares Ultrapower brought income with growth. Ultrapower operating capacity after the merger, in clear and Tianjin Lung wood shell, profitability, solvency and ability to grow has increased in varying degrees. EVA value after the acquisition remains positive. The acquisition of Ultrapower, LongtuGame, Camel Games produced good results with positive effect.Chapter ? summarizes future acquisitions computer industry outlook. It is the basis of the above study and discusses registration system for the computer industry mergers and acquisitions impact on the future of computer industry mergers and acquisitions. This paper through case study reached the following:First, listed companies should adopt a cautious approach to make decisions and should avoid acquisition companies which are still in its infancy period while choosing acquisition targets. If the listed companies have a certain competitive and mature flagship product at a reasonable valuation, it is more likely for them to quickly improve its own performance level and attract the attention of investors.Second, in the situation of optimism, there is miscarriage of justice of the future market situation. The listed companies'share price would be overvalued in many cases. To protect the interests of listed companies, an agreement on gambling and performance compensation become effective means to control the risk of impairment of goodwill.In the aspect of computer industry mergers and acquisitions outlook, I believe that the impact of registration system to be implemented is limited for the computer industry. The market will continue to maintain popular with strong demand.Chapter ? summarizes the full text of the summary of conclusions.Main contributionInnovative contribution of this paper has four points:First, based on the collected M & A data of computer industry in recent years and integrating data analysis, this paper does research about the characteristics, profit contribution, market popularity of the computer industry mergers and acquisitions in different aspects with exploration in the computer industry acquisition motivation.Second, the study of M & A performance were expanded from three angles: First, a method to measure changes in the stock price of acquisitions and changes in market growth and expected changes; second, financial indicators to measure changes in financial condition before and after the merger; finally, EVA method measuring contribution to the performance of mergers and acquisitions.Third, it roots out success of cases and summarizes the select of acquisitions subject and revelation of goodwill impairment risk control.Fourth, based on the summary of the study, this paper discusses the impact of the registration system for the computer industry mergers and acquisitions, which makes a clearer future prospect of the computer industry's mergers and acquisitions.