Research On Performance Evaluation Of DCITS Merger And Acquisition Of Howso Technology

Promoting the modernization of information technology and accelerating the construction of digital China is an important measure to implement the national strategy of strengthening the country through technology,and is a powerful guarantee for guiding the development of the information industry to better meet the people's growing needs for a better life.In order to accelerate the development of the digital economy,the state has continuously improved its policy environment and introduced relevant policies to encourage enterprises to reorganize and integrate.As a result,the number of mergers and acquisitions in the information technology industry has begun to show an upward trend,especially in the case of horizontal mergers and acquisitions in the industry.And the turnover is increasing day by day.But what cannot be ignored is that the ultimate goal of M&A activities is to achieve strategic synergy and overall revenue maximization between the two parties.Therefore,it is necessary to evaluate the performance of the company after the merger as much as possible to measure the efficiency of mergers and acquisitions.Therefore,what kind of evaluation method and which indicators are used to measure the M&A performance has become the focus of the theoretical and practical circles.Therefore,this paper takes the information technology industry giant DCITS as an example,based on the evaluation method of balancedscorecard,studies the performance of its acquisition of Howso Technology Co.,Ltd.,first defines the concept of M&A,M&A performance and balanced scorecard.Based on relevant theories,the paper summarizes the specific processes and methods of the acquisition of Howso Technology by DCITS.Considering that the market reaction can more effectively reflect the operating performance of information technology enterprises,this paper adds the original customer dimension to the market valuation analysis.The four dimensions of the Balanced Scorecard method were revised to finance,market valuation,internal processes and innovation and learning,and combined with the synergy theory to evaluate the performance results of the acquisition of Huasu Technology,in order to seek financial,strategic,etc.A comprehensive assessment of M&A cases from multiple perspectives.The study found that DCITS's acquisition of Howso Technology has improved its profitability,its operational capacity has begun to improve,and its short-term solvency has been insufficient.However,its long-term solvency has improved,its growth capacity has also increased significantly,and financial synergies have begun to appear.The overall market valuation situation and brand attention trends are improving;The respective growth rates of management fees,financial expenses and sales expenses are reduced,realizing the integration of personnel and business after mergers and acquisitions,reducing production costs and improvingmanagement efficiency.Optimized asset structure;The number of patent applications for DCITS has increased significantly year-on-year,and there has been no serious brain drain due to the merger of Howso Technology.In summary,the acquisition of Huasu Technology by DCITS has initially produced financial synergies,operational synergies,management synergies and innovative synergies.M&A performance is considerable.Finally,in this paper,in the aspects of finance,market,management,etc.,it proposes to improve the financial synergy after mergers and acquisitions,pay attention to the investor market reaction,strengthen mergers and acquisitions,and improve the core competitiveness of the two parties.It can provide lessons for the expansion strategy of similar enterprises in the industry and promote the stability of the real economy.