The Motivation And Performance Analysis Of Series Mergers And Acquisitions In Qtong Education Group

In the past few years,as the key period of deepening education reform in an all-round way,the guarantee of education funds created a huge market space.The pace of technological change is accelerating.For enterprises in the education information service industry,it is both an opportunity and a challenge.In this context,social capital continues to pour in,with the intention of seizing the market.Because of the industry's market's low concentration and scattered resources,enterprises have opportunity to quickly transform and achieve leapfrog development through mergers and acquisitions activities.As a result,while mergers and acquisitions are unusually active in a time,series mergers and acquisitions frequently appeared.As a pioneer in the wave of educational information,Qtone education has also carried out continuous merger and acquisition activities in order to realize the transformation and upgrading.Accompanying the merger and acquisition activities,the stock price ups and downs and the star performance flashed.The results of the mergers are not satisfying,causing the loss of small and medium-sized investors,resulting the value of the loss of enterprises.Past is the teacher of the future.Based on the existing literature and industry situation,this paper first analyzes the background,motivations and risks of series mergers and acquisitions of enterprises in the industry in theory,and discusses the impact on performance.Specific to the case company,combined with the study of public information,this paper will divide motivation into three dimensions-strategic motivation,business motivation and promoting motivation.This paper holds that the strategic motivation is the main motivation;in order to realize the strategic,needs in resources formed the business motivation mentioned in this paper;the policy and management's conceit amplified the aforementioned motivation.While analyzing the motivations,this paper reveals the risks faced under the continuous mergers and acquisitions of case company.Afterwards,this paper analyzes the performance changes of mergers and acquisitions from the short-term and long-term perspectives,using the methods of event-study,accounting research and economic value-added evaluation.It is found that the continuous mergers and acquisitions of enterprises in the short term achieved the market recognition,which brought about short-term wealth effect.In the year to two years after the merger and acquisition,there was a leap in performance growth.However afterwards,the performance growth was weak and unsustainable.This paper further analyzes the causes of poor performance and provides recommendations to help case company improve their performance.Finally,this paper extracts four points of experience from the continuous mergers and acquisitions of Qtone Education for reference,and provides corresponding enlightenment to relevant enterprises,investors and regulatory authorities.