An Study On M&A Performance Of Blue Focus

According to the different modes of development,the development of enterprises can be roughly divided into endogenous growth and exogenous growth.Endogenous growth means enterprises develop by expanding their own production capacity,reducing costs and improving efficiency,and then expand revenue and market share.Exogenous growth refers to the acquisition of other companies through investment in enterprises to expand the overall production capacity and increase market share.Compared with endogenous growth,the growth of the extension can often quickly change the financial status of the enterprise in the short term.On the other hand,according to some studies on the financial indicators and stock market value of M & A activities in recent years,M& A has not significantly improved the performance of enterprises,and even the enterprise value has decreased significantly after M & A.Can be seen,corporate mergers and acquisitions is a double-edged sword,there are both opportunities and risks.BLUE FOCUS's main business includes PR and advertising marketing.Its services covers all major sectors of the national economy and with a wide range of domestic and foreign customers.After years of development,BLUE FOCUS has become the domestic leader and an international enterprise of significant influence in the industry.At present,BLUE FOCUS's main business includes four sections: integrated marketing,e-commerce,mobile Internet and big data.Since its IPO,BLUE FOCUS has maintained a high growth rata for many years.In this paper,we choose BLUE FOCUS as the research example.We analyzed BLUE FOCUS's basic situation,business structure,business environment,strategic objectives,and analyzed in detail BLUE FOCUS's investment and acquisition activities,industry of investment and acquisition and type of its M & A activities.In order to verify the effect of BLUE FOCUS's M &A activity,the author uses the economic value added(EVA)model,by referring to the financial data of BLUE FOCUS from 2011 to 2015,to calculate BLUE FOCUS's economic value added(EVA)between 2011 and 2015 and the change trend of EVA value.Through the study we found that BLUE FOCUS's economicvalue added(EVA)showed a sustained growth trend as a whole with the continuous investment and acquisition activities from 2011 to 2015,but the net profit and net cash flow dropped in 2015.Therefore,the author believes that BLUE FOCUS achieves positive performance of mergers and acquisitions from2010 to 2014.