Research On The Motivation And Performance Of Nanyang Shares’ Acquisition Of Topsec

After the Chinese economy entered a new normal,the rapid development of the capital market has led to more and more companies joining the M&A market.With the release of relevant policies such as deleveraging and de-capacity,traditional listed companies have been greatly affected.In order to cope with new challenges,many companies have chosen cross-industry mergers and acquisitions for business transformation.Such mergers and acquisitions have not produced uniform evaluation criteria.It has become the direction and focus of scholars’ research.At the same time,with the establishment and improvement of China’s multi-level capital market,the number of listings in the New Third Board market has shown an upward trend.The number and amount of traditional listed companies’ cross-industry cross-sector mergers and acquisitions of NEEQ companies have grown steadily year by year,becoming a merger in recent years.What are the emerging hot products of the market,and what are the special reasons for such cross-industry cross-sector mergers and acquisitions? Can it effectively improve the company’s performance? It has become a problem that needs to be explored.Based on the research of M&A by domestic and foreign scholars,this paper combines the unique NEEQ market in China,and selects the traditional listed company Nanyang Co.Ltd.to acquire the NEEQ network security company Tianrongxin as a case.First,it introduces the current situation of listed companies acquiring NEEQ companies,followed by Combining the case to explore the specific motives of Nanyang’s acquisition of Tianrongxin,and finally,in order to evaluate the performance of mergers and acquisitions,on the one hand,through the event research method,the short-term wealth effect of Nanyang shares acquired Tianrongxin was evaluated;on the other hand,by comparing the relevant non-Financial indicators and financial indicators,respectively,from the three dimensions of business synergy,management synergy,and financial synergy to evaluate the performance of the company before and after mergers and acquisitions.The research results show that the main motivations for the acquisition of Topsec by Nanyang Co.,Ltd.are three points: one is to carry out the strategic layout and realize the dual main business model;the second is to integrate the high-quality resources of the acquired enterprises and realize the complementary resources;the third is to seek new profit points.To achieve synergy.In terms of performance,the AR and CAR values in the short-term mergers and acquisitions are positive,which will increase the value of the enterprises to a certain extent and bring positive impact to the enterprises.After analyzing the synergy effect,it is concluded that Nanyang shares have changed from a single main business to a dual main business,and the scale effect has begun to appear.In terms of management coordination,the management fee rate in the year of mergers and acquisitions has surged,the personnel composition has changed dramatically,and the management synergy has not been performed well;financial synergy,solvency has been further improved,corporate asset turnover capacity has improved significantly,while Nanyang shares have found new profit growth points after mergers and acquisitions,profitability has grown steadily under the dual main business model,and finally growth capacity,especially net profit and the growth rate of operating income has increased significantly,ranking among the best in the industry.By studying this case,the author puts forward the following suggestions to Nanyang: first,control the expense ratio,improve management coordination;second,develop dual main business,improve corporate strategy;third,avoid goodwill and thunder,and improve internal control.The following suggestions are proposed for similar companies: first,to effectively formulate mergers and acquisitions strategies and improve strategic plans;second,rationally select mergers and acquisitions to form complementary advantages;third,effectively integrate M&A resources and achieve synergies.