A Comparative Study Of Acquisition Premium And M&A Performance Under Different M&A Acquisition Strategies Based On The Cases About XINKECAILIAO

First of all,in the context of industrial restructuring,the returns on traditional energy and manufacturing industries have been reduced,and the pressure on performance has been relatively great.Emerging industries such as culture and media industry are in full swing,rapid revenue growth,short investment cycle,you can make a profit in the short term.At this time,the cooperate foundation was built between the traditional industries and the emerging industry.On the one hand,the traditional manufacturing industry owns free cash but has a slow business grows speed.So,they need to find a new profit-making spots.On the other hand,the emerging cultural media industry is growing rapidly and requires huge amounts of funds to sustain the rapid growth of its business.Under such circumstances,the traditional industries have formed a wave of investment in cultural enterprises.In the tide which traditional industries such as manufacturing investment in cultural industries,there have been two kinds of mergers and acquisitions motivations.Some companies want to boost performance,meeting capitalization market requirements,acquiring control of less valued companies by capitalizing on emerging industries with higher profit margins.They usually repackaging and repossessing the target companies for the right time.M&A transactions with above characteristics are called financial M&A.Others want to achieve economies of scale through mergers and acquisitions and other business synergies,with such characteristics of corporate mergers and acquisitions known as strategic M&A.Firstly,article uses the content analysis method to analyze the motivations of this two mergers and acquisitions cases.Secondly article analyze the difference between the merger premium and its digestion mechanism under two different motivations.Finally,authour examined the performance of the two mergers and acquisitions.The main findings are as follows.Firstly,higher M&A premiums may be generated under the motivation of financial rather than the strategic of cooperate.Secondly,in the financial M&A,Will not take too many measures of integration,and strategic mergers and acquisitions,the main mergers and acquisitions companies will be more cautious after the merger and design of mergers and acquisitions program in order to achieve the best performance of mergers and acquisitions.Thirdly,as for the performance of mergers and acquisitions,In strategic motivation,the profitability and solvency of enterprises have been enhanced,and the income of all shareholders has increased.In financial mergers and acquisitions,they usually only increase the returns of controlling shareholders or major shareholders,and the returns of small and medium-sized investors can not be effectively guaranteed.