Zhengye Technology Corporation M&A Case Study

The development and strength of the electronic information industry,especially the rapid growth of the small and medium sized private enterprises of electronic information manufacturing,is of great significance to the rapid development of China intelligent manufacturing and the realization of the strategic goal of "made in China 2025" in the new era.In recent years,the pace of China's economic restructuring and industrial transformation and upgrading is accelerating,which has led to the rapid development of the electronic information industry,the continuous active M&A in the industry,the significant improvement in the ability to merge and the number of M&A,which has become the focus of the capital market and the management of the enterprises.However,there are still a lot of problems in the process of M&A in the electronic information manufacturing industry.How to effectively carry out M&A,to achieve better cooperative goals,to improve the performance of M&A and to achieve a faster transformation and upgrading is the focus of our attention.The enterprise's M&A performance is not significant enough,and the synergy target can not be realized.The reason is that they do not pay attention to the matching of the resources and the comprehensive integration after M&A.Therefore,this paper analyzes the matching of the resources before M&A and the comprehensive integration after M&A,and evaluates the performance to To test whether the matching and integration work achieve the desired results,and whether the collaborative goals are achieved.,which is of theoretical and practical significance.This paper selects the case study of Guang dong Zhengye Technology company Ltd.,(Zhengye Technology)during the period of 2015-2016,and studies the motivation,industry characteristics and development trend of its M&A.The main reasons for the M&A are as follows: optimizing the business structure,reducing the management risk,improving the market share,seeking new growth points,improving the efficiency of the M&A,and giving full play to the synergy effect.The matching analysis of their resources before the M&A shows that the two sides have potential synergy in three aspects: assets,capabilities and social relations.Using the event method,the Tobin' Q method and the accounting research method,this paper studies the impact of this merger on performance from the perspective of short-term,long-term and synergistic,tests the integration effect after M&A,summarizes the successful experience,and draws the enlightenment to the future M&A of the electronic information manufacturing industry.The results show that the M&A transaction is successful.In the short term,the M&A of the industry has created positive value for the stock holders;in the long run,the M&A performance is not significant,the intrinsic value of the enterprise has not increased obviously,but the value of the enterprise has a steady rising trend;from the perspective of synergy,the M&A event has a synergistic effect to achieve mutual benefit and win-win.Finally,based on the successful experience of the M&A case,the enlightenment and suggestions are drawn: first,the success of the M&A is benefited from the matching of the resources before the M&A,which greatly reduces the difficulty of the integration after M&A;second,it is essential for the comprehensive integration after M&A;and last,through M&A,enterprises can achieve their upgrading,but in order to achieve this goal,the most important thing is to enhance their core competitiveness.