M&A Motivation And Performance Of Hualu Baina Company Taking Over Blue Flame Company

Mergers and acquisitions as an important means of enterprise expansion,has become indispensable to promote global economic development.Since 2001,the trading volume and turnover of our country's enterprise merger and acquisition activity is growing.But in the merger and acquisition activity,not all mergers and acquisitions to achieve company's initial m&a motivation and even reduce the value of the company or damage the rights of the shareholdersIn 2014 China's media industry involves the biggest case of mergers and acquisitions,Hualu Baina merger and acquisition of Blue Flame has been completed,the subsequent integration work has entered the stage of finishing.But exactly how m&a performance,is it helpful to complete the strategic target of company and improve financial performance,and can it bring what kind of experience or lessons in the media industry mergers and acquisitions even all the mergers and acquisitions of all companies,these are all we need to make in-depth research and discussionArticle first defining the core concept of mergers and acquisitions,etc,on the basis of the analysis of the m&a motivation theory Including synergy theory market power theory,transaction cost theory,hubris hypothesis and undervalued theory Then briefly introduce the research achievements of domestic and foreign scholars on m&a performance and the research methods will be used in the paper.Then using the Michael Porter five forces model to analyze the media industry,and SWOT analysis on the two sides do a simple introduction.Then analysis motivation of Hualu Baina m&a Blue Flame and introduce specific process of mergers and acquisitions.The main m&a motivation is that perfect industrial structure,optimize the business structure,to absorb high-quality resources.And then using a variety of methods to a detailed analysis of the acquisition performance.One is through the event study analysis the market reaction to the merger and acquisition activity.The second is through financial index analysis method to evaluate whether Hualu Baina achieve synergistic effect.Three is to test whether the m&a performance evaluation method based on EVA bring Hualu Baina company's value increase.Overall,the acquisition has certain positive impact on the company,the market reaction is good,most of the financial indicators have improved,and EVA has significantly improvedFinally,several suggestions and countermeasures was made based on the previous performance evaluation results.One is to select the appropriate payment;The second is to broaden the financing channels;Three is to vigorously develop intermediary institutions;Four is to build value assessment system;Five is to strengthen the integration after the merger,including cultural integration,human resource integration and management integration.