Value Creation's Driving Factors And Effects Of Blue Focus' Continuous M&A

With the gradual development of China's capital market,M&A transactions even a large number of continuous mergers and acquisitions blow out.We will see continuous M&A as an approach of extension development used by more and more firms.The current mainstream view of academia is that the acquirer is difficult to create value through mergers and acquisitions.As a result these questions from capital market mention a new direction of academic research,such as which companies are more suitable for continuous mergers,and acquisitions,which factors drive the value of continuous mergers and acquisitions.This paper chooses Blue Focus---the typical enterprise of the M&A as the object of study.Based on the previous research on value creation of M&A and the theory of value creation drivers,driving factors of M&A value creation are:(1)From the perspective of M&A strategy,it is found that through the horizontal,vertical and mixed M&A forms,the M&A value network of Blue Focus is formed around the industrial chain.The value network provides customers with integrated marketing services,while the value of the network within the subsidiary is to share customers,reduce communication costs synergies.So the network of M&A drives value creation.(2)Continuous M&A is a special investment.Its value creation depends on the capital operation efficiency.In order to reduce the cost of capital by adjusting the capital structure in the continuous M&A transaction,the M&A transaction and the current cash outlay can be improved by improving the M&A transaction skill,which can increase the capital operation efficiency and drive the value creation.(3)With a highly decentralized shareholding structure,the Blue Focus strengthens supervision and checks on the manager through the establishment of a good relationship between the shareholders.As a result it effectively reduces the possibility that managers make blind choice and overconfidence.Value creation is achieved by reducing the cost of mergers and acquisitions.(4)Continuous M&A is an important business behavior,at the same time it significantly impacts the performance of listed companies in the capital market.Blue Focus takes full advantage of the M&A as a market value management tool and low valuation of primary market.It greatly enhances the expectation of capital market through buying high quality target of low cost.First of all,for the media marketing and other asset-light industry,on the one hand it is difficult to expand through their own operations because of business constraints.So the rapid expansion of the scale through mergers and acquisitions becomes an important tool of firm development.On the other hand,light asset-based enterprises are often dependent on core staff and intangible assets which do not require deep integration,compared to industrial enterprises.So they are more suitable for continuous mergers and acquisitions.Secondly,these enterprises can create value from M&A network,capital operation,shareholder relationship maintenance and market value management in continuous M&A.