Serial M&As Performance Study Of H Company

Since the reform and opening up,cultural media industry has experienced the development process from weak to strong,as the rapid development of the sunrise industry,has become an important part of the socialist economy with Chinese characteristics,because of highly importance of central and all levels of government,many good policies are endless,and the booming Internet economy also offers great opportunities and challenges for the development of cultural media industry.In this context,M&A have gradually become the hot industry,culture and media companies are increasingly involved in the team of M&A,large merger cases of crossing industry and regional have occurred,M&A have become a way for cultural media industry to expand the scale of enterprises,and to realize their own development.In 2015,the announcement of the cultural and media industry reached a record high of $ 37.287 billion,and the tightening of policies in 2016 was rational,but the number of mergers and acquisitions remained steady,in the cultural media industry,it is often seen that serial M&As boom.However,this phenomenon does not mean that the number of M&A is the quality of M&A,can serial M&As improve the performance of enterprises,promote the rapid development of enterprise still is a problem needing we explore.On the basis of serial M&A study of domestic and foreign scholars,this paper combining with the case of film and television business of culture media industry where emerges many hot cases of M&A,used event study and financial index method to research the H's short-term and long-term performance.On the other hand,choosing the financial index ROE reflecting the comprehensive strength of the enterprise evaluates long-term performance,and with reference to the Du Pont analysis system,using serial substitution method to decompose the index,assesses the performance of enterprises after the fact of serial M&As from profitability,operational capacity,solvency and other aspects.The results show that the serial M&As of H company,to a certain extent,have increased the short-term financial benefits and long-term comprehensive strength of the enterprise,and brought positive performance.However,the fact can not be ignored is that with the increase of the number of M&As,M&As performance of H company post market dull,long term performance evaluation index is also declining trend in the later period,After specific analysis,the conclusion of evaluating H serial M&As is summarized as follows:Firstly,profitability is improved,but the earnings quality is low,secondly,the scale of assets is expanded,but the operating capacity decreased,lastly,financial income is increased,but capital structure is poor.In this study,based on the conclusion,the author put forward the following suggestions for mergers and acquisitions of H,the company should do that:First of all,vigorously develop the main business,enhance the quality of earnings,then try to strengthen synergies,and seek common development of long-term,finally,face of corporate financial risk,optimize capital structure,in order to achieve long-term healthy development of enterprises,at the same time provide reference to other related enterprises that make M&A similar to the H.