Synergistic Effect And Value Creation Efficiency Of Continuous M&A

With the leapfrog of China's economy,the capital market of our country has achieved unprecedented breakthrough.Under such a background,M&A became the main way to expand company scale.Domestic and foreign scholars have carried out a lot of research of mergers and acquisitions.Depend on the basis of previous theoretical research,the purpose of this paper is to analysis the continuous M&A behavior for a company if they can really achieve their synergistic effect,so as to make the enterprises to maximize the value and improve the efficiency of value creation.Blue focus processed continuous M&A in recent years,this paper selects Blue focus on behalf of the enterprise as the main research object,and choose Guangdong sunshine media as a comparative object,because it's in the similar size and same industry.This paper compares the difference of financial performance of these two companies and analyze causes of differences.In further research,EVA and EVA momentum for Blue focus and Guangdong sunshine counted as measure,tried to analyze if continuous M&A really promote the efficiency of value creation.Through the analysis,we'll found that the financial performance of Blue focus and Guangdong sunshine shows a large difference.In addition,different stages of continuous M&A in Blue focus also showed a large difference,scale expansion stage of continuous M&A achieved better synergy and nice financial performance,and guided by the strategy of "digital,internationalization" of the second phase M&A performance is not satisfactory,did not show a good synergistic effect.In contrast,Guangdong media,since continuously self-built subsidiary,financial performance appeared more declines.It reflects reasonable continuous M&A shows better performance in the process than self-built expansion.After discussion of financial performance,this paper compares the value creation efficiency of these two companies by measurement of EVA and EVA momentum.Found that Blue focus performance more stable than Guangdong sunshine and basically achieve value creation.Value creation efficiency of Guangdong sunshine experience more fluctuation and effect of value creation is not obvious.Through the analysis of this paper,the following conclusions are drawn: Continuous M&A of Blue focus achieved more synergistic effect;Continuous M&A's value creation efficiency is more stable;Continuous M&A combined with industrial chain can create more value.