An Analysis Of The Synergy Effect Of The Acquisition Of Daoxi Technology By 35 Internet At A High Premium

With the continuous development of China's economy,the Internet,as a new type of industry,is profoundly changing the relevant models of China's business operations and development,and Internet companies have also entered the golden era of mergers and acquisitions.Business investors in various fields have begun to look to the Internet capital market,looking for small and medium-sized Internet companies in the capital market,and to achieve the strategic layout of the Internet industry through the acquisition of Internet companies.At the same time,small and medium-sized Internet companies also need to rely on the resources of large companies to strengthen their own strengths.High-premium mergers and acquisitions have become a new feature of Internet corporate mergers and acquisitions.Prices of acquired companies are often several times or even several times higher than their own value.In this context,the study of high-value mergers and acquisitions of Internet companies has important practical significance to the analysis of new business forms and value evaluation of Internet companies.This article first elaborates the background and significance of the high premium M&A of Internet companies,and sorts out the domestic and international research results on this issue,including the premium and premium relationships,M&A value assessment and synergy effects.The previous research results are systematically analyzed.Based on the above,we will clarrify the research methods to be used in this paper,namely case study method,financial index method,factor analysis,and event analysis method,and put forward the research ideas of this paper.Then,a detailed analysis was conducted on the case of the Sanwu's acquisition of Daoxi Technology.Based on a brief introduction of the Sanwu and Daoxi Technologies,this article focused on the synergies of mergers and acquisitions to explain the reasons for the high premium mergers and acquisitions,then it explained the analysis of mergers and acquisitions program,and based on the above results,it conducted a specific analysis and study of the synergy effect of the high premium mergers in this case.Subsequently,this article analyzed the aim of Sanwu's acquisition of Daoxi Technology and then the synergy effect of it using figures and models.The testing steps are as follows:first,by using financial ratios,the article gave an induction and summary of the synergy on the whole and from three angles.Afterwards,the event research method is used to test the market reaction of the acquisition.Finally,the financial effect of M&A is tested by factor analysis method.The synergy effect of the acquisition is evaluated according to the test results and some suggestions are given.The results of the case study show that:Sanwu's acquisition of Daoxi Technology has indeed produced a good synergy effect,which is mainly reflected in the operating synergy effect and the financial synergy effect.In terms of operating synergies,this acquisition has improved the profitability of Sanwu Technology and has brought certain growth opportunities.The complementary resources of the M&A parties have enhanced the competitiveness of the enterprises,and the entry of new industries has increased the business sector of the Sanwu Technology and enriched their revenue sources.The financial synergy effect has been improved.After the merger and acquisition of Daoxi Technology,it increased its cash inflow and efficiency of Sanwu Technology by transferring its own low-cost internal funds to the higher-paying online game segment.However,it has not yet managed synergy effects.The increase in administrative expenses or insignificant increase in operating efficiency indicates that currently the integration of management of Sanwu Technology needs to be further improved.Finally,based on the above analysis,this article concludes,and proposes suggestions from two aspects,that is,attention to the choice of targets should be paid on in the merger and acquisition of Internet companies so that they can conform to the industry trend and have certain synergies.Paying attention to the integration of the later period,from the strategic level,the basic level,the organizational level and the cultural level,in order to produce better M&A results.The development of the Internet model has profoundly affected all corners of the society.The high premium M&A of China's Internet companies has become a new feature and form of M&A,further promoting the development and progress of the social economy.This article takes the Sanwu's acquisition of Daoxi Technology as the main body of research,and elaborates on the process,motivation and other aspects of the case,and uses empirical methods to test the performance of mergers and acquisitions in order to provide realistic reference.