Study On Synergistic Effect Of Hanwei Electronics Group Corporation's Vertical Mergers And Acquisitions

With the national “13th Five-Year Plan” to integrate the Internet of Things into the national strategic new industry,the Internet of Things is gradually becoming a hot spot for social and economic development.Sensors,as the heart of the Internet of Things,have a wide range of upstream and downstream industries.In recent years,the rapid development of emerging industries such as industrial Internet and automotive electronics has also ushered in a huge development opportunity for the sensor industry.However,the market is generally in a "scatter,small,weak" situation,and foreign capital occupies the high-end market of China's instrumentation industry.The competition among enterprises is becoming increasingly fierce.The simple internal growth can no longer meet the needs of enterprise development.Merger and acquisition and reorganization have gradually become an important means for enterprises to rapidly expand their scale and enhance their own strength.In the actual mergers and acquisitions,horizontal mergers and acquisitions are more extensive,but in recent years,vertical mergers and acquisitions are also more common.Vertical mergers and acquisitions can enable enterprises to break through the original industries and quickly enter a new industry.At the same time,enterprises reduce the transaction costs between upstream and downstream enterprises through vertical mergers and acquisitions.However,Merger and acquisition activities contain risks.An important criterion for evaluating the success of Merger and acquisition is to measure whether companies have achieved synergy in Merger and acquisition.This paper first introduces the related literature and theory of vertical mergers and acquisitions,and then analyzes the status quo and characteristics of the instrumentation industry.Taking the merger and acquisition events of Hanwei Electronics Group Corporation as the case study object,and selecting the corresponding financial indicators,respectively,from the business synergy effect.Management synergy and financial synergy for analysis and evaluation.By analyzing and evaluating the Merger and acquisition synergies of case companies,we will explore the key points for companies to obtain synergies in Merger andacquisition,and hope to provide reference for the next acquisition of Hanwei Electronics Group Corporation.Through the research on the financial data of Hanwei Electronics Group Corporation in the 7-year period from 2011 to 2017,In 2014,Hanwei Electronics Group Corporation's large-scale vertical mergers and acquisitions to improve the industrial chain realized the transformation from a single instrumentation enterprise to an IOT enterprise with a focus on application,and basically realized the synergy effect of mergers and acquisitions.The specific performance is as follows: the management has basically achieved synergy;the management has achieved certain synergistic effects;the financial synergy effect is weak.At the same time,it was found that Hanwei Technology has pursued the layout of the Internet of Things enterprise in the process of mergers and acquisitions,light development,light integration,and neglecting the development of the original industry.On this basis,this paper gives suggestions based on the specific situation of Hanwei Electronics Group Corporation.The innovations of this paper are as follows:(1)At present,most of the researches on the synergy effect of mergers and acquisitions in China are horizontal mergers and acquisitions,and there are relatively few studies on the synergies of vertical mergers and acquisitions,and specifically aim at the instrument manufacturing industry with great development prospects in order to improve the industry.There is a lack of research on the chain for a series of mergers and acquisitions.This article takes a series of vertical mergers and acquisitions of Hanwei Electronics Group Corporation,a leading manufacturer of sensors in the instrumentation manufacturing industry,as an example,and uses financial indicators to analyze the time of 7years before and after the merger.It has certain innovation in the research content.(2)Comprehensive performance analysis of M&A performance from three aspects of operation,finance and management.The research is comprehensive.