Research On Synergy Effect Of Enterprise Mergers And Acquisitions

With the continuous improvement of China's economic strength,both domestic and foreign market competition is becoming increasingly fierce.Based on the background of economic globalization,in order to enhance their competitiveness and better adapt to changes,merger and acquisition has become a more effective way to enter the value chain of high-end industries and rapidly improve their competitiveness.Through more than ten years of accumulation,the Internet industry has been growing in the main form of mergers and acquisitions,among which horizontal mergers and acquisitions account for a large proportion of Internet mergers and acquisitions.Through horizontal mergers and acquisitions,the Internet industry can greatly increase the number of users and enhance its influence in the industry.Therefore,the horizontal mergers and acquisitions of Internet enterprises are slowly moving towards diversification.Enterprises can explore new profit growth points in this way,and can disperse a certain degree of risk.This paper takes the second-ranked categorized information website Catch-up Network M&A in 58 cities as an example.Based on the theories and concepts of M&A and M&A synergy,the case of Catch-up Network M&A in 58 cities is analyzed.Firstly,this paper introduces the background,motivation and process of M&A.Then it makes a concrete analysis of the operation,financial and management synergies of the M&A event by using financial index method,non-financial index method and event study method.According to the results of the analysis,we find that it has achieved a certain synergistic effect on the whole.In terms of management,its profitability greatly exceeds the situation before the merger and acquisition,and its development ability is enhanced.After the merger and acquisition,it has achieved marketing and user synergy;in terms of finance,the merger has produced certain tax-saving effect,and the capital results still need to be optimized;in terms of management,its operation after the merger and acquisition.The ratio of sales and management expenses to revenue has been reduced,the level of asset management has been improved to a certain extent,and innovative business has developed well.The enlightenment and shortcomings of this case are clarified.