Research On Cross-Industry M&A Performance Under The Background Of Traditional Enterprise Transformation Case Study

Under the background of supply-side structural reforms,the demand for transformation and upgrading of traditional enterprises has become stronger.With the development of M&A markets,cross-industry M&As have become common phenomena,and traditional enterprises have achieved diversified operations or enterprise transformation through cross-industry M&As.However,the regulatory environment has brought new changes.Cross-industry M&A issues and controversies have always existed.Cross-industry M&As of traditional companies are affected by the characteristics of individualization of companies,and there is no uniform evaluation criterion for the success or failure of cross-industry M&A.Performance after cross-industry M&A is intuitive and subject to widespread concerns.The performance evaluation of cross-industry M&A and the influencing factors deserve to be discussed in detail in the micro case.Based on the analysis of China's traditional enterprises cross-industry M&As,this paper conducts in-depth analysis of the typical case,evaluates and analyzes the performance of cross-industry M&A,and explores the key factors for cross-industry M&A performance under the background of traditional enterprise transformation,aiming at offering suggestions for the following cross-industry M&As,making market and regulators to rationally view cross-industry M&As,strengthening the protection of investor interests,and providing reference for evaluating cross-industry M&As.On the basis of combing research theories and methods,this paper starts with the development of M&A market in China and the overall situation of cross-industry M&A market,and then analyzes the characteristics and problems of cross-industry M&As under the background of traditional enterprise transformation.The analysis finds that traditional Chinese companies' cross-industry mergers and acquisitions have distinctive features in terms of M&A targets,performance commitments,development strategies and M&A transactions.At the same time,the cross-industry M&As have problems about the performance commitment,the risk of issuing shares to buy assets,the uncertainty of long-term performance,and development strategy changes and other issues.In order to further study the performance of cross-industry M&As in the context of traditional enterprise transformation from a micro-subjective perspective,this paper selects a typical case of Lugang Technology.On the basis of analyzing the motivation of M&A and M&A transactions,this paper evaluates the performance of cross-industry M&A from the aspects of financial performance and non-financial performance.The financial performance consists of short-term performance and long-term performance.Short-term performance is evaluated by the analysis of the wealth effect of the stock market,and the long-term performance evaluation comprehensively adopts the methods of financial index analysis,DEA evaluation and EVA analysis,combined with performance commitment accomplishment,systematically analyzing the performance of cross-industry M&A and exploring the key factors in cross-industry M&A.What's more,this paper selects cases with the same characteristics with the M&A target industry and the post-acquisition strategy respectively for comparative analysis.This paper finds that the goal of M&A has been basically realized,M&A performance has been in line with expectations,the diversified development model has basically taken shape.On the whole,the M&A is a success.However,there are still some challenges in maintaining the long-term performance of the new business and its follow-up sustainable development.It is necessary to continue to promote the common development of the two main businesses,strengthen the management of scale efficiency and business risks.This paper summarizes the case enlightenment,puts forward suggestions for the case problems,and provides references for cross-industry M&As of traditional enterprises.The conclusion of this paper is that cross-industry M&As in the context of traditional enterprise transformation is feasible,the traditional enterprises can achieve diversification through and reach the goal of transformation through cross-industry M&As.Cross-industry M&A is an important way for traditional enterprises to rapidly enter new business areas,find new profit growth points,reduce business risks and implement diversified business strategies.There are many influencing factors of cross-industry M&As under the background of traditional enterprise transformation.The development of micro-entities,the industry trends in which they are located,the activity of capital markets,the choice of acquired company,the selection of M&A targets,the change of development strategies,the macroeconomic cycles and national policies all influence M&A performance.Cross-industry M&A of traditional enterprises is deserved to be given a rational view,and the protection of investors' interests should be attached importance.Cross-industry M&As in the context of the traditional enterprise transformation should be given a cautious attitude toward risks while avoiding being generalized.Finally,this paper summarizes the conclusions of the study and its reference value for regulators and investors.From the perspective of cross-industry M&As in the context of the traditional enterprise transformation,companies should carefully select cross-industry M&As,adjust the strategy of enterprise development,attach importance to long-term performance goals and strengthen the protection of shareholders' interests.