A Research On Performance Of Bluefocus's Serial Mergers And Acquisitions

Mergers and acquisitions(M&A)are an important way to make enterprise bigger and stronger.more and more enterprises choose this path to achieve rapid growth and increase market competitiveness.The number of M&As in China was 2,692,the transaction amount was 1.04 trillion yuan in 2015.With the increasing amount of M&As.the number and frequency of M&As also increased significantly,which also makes some of the M&A behavior showing a continuous M&A trend.The phenomenon of continuous M&As has become a hot issue for domestic scholars to study M&A gradually.Scholars' research on continuous M&A focused on the performance of continuous M&A mainly,because the market and the industry is different,while the M&A of enterprises is different,the research results are different,there is no consistency conclusion.This paper chooses the Blue Focus as a research object in continuous M&A,and analyzes its continuous M&A performance.Through continuous M&A of Blue Focus from 2010 to 2015,the author found that M&A of Blue Focus presented obvious stage characteristics.M&A of Blue Focus were strictly executed based on its strategic goals.Therefore,three M&A motivation could be obtained,which were developing service categories and improving its service chain,planning digital marketing and promoting business transformation,expanding the service network and achieving global layout.Then the author made a theoretical analysis of M&A performance combined with Blue Focus' development strategy and M&A motivation and considered that the continuous M&A based on the company's strategy would create performance improvement.In this paper,the author analyzed Blue Focus' continuous M&A and its performance,and drew the following conclusions: Short-term performance: M&A performed well and the company gained market support and affirmation during event window period.Long-term financial performance: For management coordination,continuous M&A improved cost management level,but the asset management level decreased.For business coordination,not only the company's profitability but also the business growth was strong.For financial coordination,the capital structure of Blue Focus was probably becoming worse while M&A achieved a certain degree of tax effect.Non-financial performance: Industry status of Blue Focus was enhanced and consolidated.The former single brand development had been developed into jointmanagement of multiple brands.Existing brands provided more comprehensive services and involved in more inclusive fields.At the same time,the author considered that under the M&A driven development model the proportion of Blue Focus' goodwill to total assets increased significantly because of the existence of premium M&A,which caused serious risks of impairment.Meanwhile,the company used a large amount of cash to execute M&A making the company's debts too large.Finally,the author made recommendations for problems existing in the Blue Focus' continuous M&A process and expected that the company could cautiously choose objectives of M&A,systematically determine transaction prices,reasonably design payment methods and appropriately prevent integration risks in future M&A.