A Case Study On M&A Motivation And Performance Of BONC

With the State Ministry issued a "big data industry" 13th Five-Year "plan", big data in China has risen to the height of the national strategy, the industry will enter in a rapid development stage. This means that the bum is known as the TMT industry after years of strategic mergers and acquisitions, in all walks of life have been initially completed the establishment of the industrial platform today, big data or will usher in the era of nuggets.This article selects seven companies that BONC mergered from2012to2015,as theresearch object, combining market current situation,industry characteristics andcompany strategic plan,to analyze the motives of enterprise M&A.In terms of M&Aperformance,first,we calculate the CAR by using event study method to.evaluate whether M&A produces short-term performance; Then, by founding a financial analysismethod,combined with the m&a motivation m&a analysis whether the merger to achieve, then respectively from the debt paying ability,profitability,operation capacityand growth ability four aspects, study M&A performance in the long run. Throughanalysis, research whether the merger really brought market performance and operatingperformance for the enterprise, so as to provide a beneficial reference in the sameindustry mergers and acquisitions in the future enterprise value and reference.Through the study of this case,we find out that short-term market performance after m&aBONC rise obviously,but the long-term financial performance.While companiesmergers and acquisitions to maintain the high speed growth,but in terms ofprofitability,solvency and operation capacity are decreased.Thus should pay attention tomergers and acquisitions integration risks, improve the efficiency of assets operation,setting up performance agreement,at the same time also to establish the relevantcountermeasures and suggestions such as investor risk awareness.