Analysis Of Tongcheng And Elong M&A

In today’s Internet industry,mergers and acquisitions have become an indispensable part of the company’s development process.However,mergers and acquisitions have two-sidedness.On the one hand,mergers and acquisitions can increase market share and improve management efficiency to achieve the effect of “1+1>2”.On the other hand,mergers and acquisitions may lead to the diversification of business operations and the inconsistency of corporate culture.The operating efficiency is reduced,making "1+1<2".Therefore,the evaluation of M&A performance has become an indispensable part of M&A activities.If real estate and manufacturing are the driving force behind China’s GDP growth,then the Internet can be said to be the new engine for China to enter the ranks of advanced countries.Internet companies have mushroomed like bamboo shoots.So far,the number of Internet users in China has exceeded 800 million.The penetration rate is above 60%.With the increasing number of Internet companies,the market is becoming more saturated.In order to seek faster development in the fierce and brutal competition,many Internet companies have embarked on the road of mergers and acquisitions,such as: fast acquisition of station A,beauty The group acquired Mobike bicycles,Ali bought hungry,and Mo Mo bought and explored,and so on.So what are the drivers of these emerging wave of mergers and acquisitions? What is the performance of M&A? There are many types of Internet companies,so how do you evaluate the M&A performance of different kinds of Internet companies? These are all the content that this article needs to discuss.In this paper,we first read a large number of domestic and foreign data,combing relevant theoretical knowledge,such as related concepts and classifications,and then analyze the M&A according to the current development status of online tourism industry and existing problems in China.motivation.Using the case analysis method,taking the merger of Tongcheng and Elong as an example,first explain the merger of Tongcheng and Elong in Beijing,and then analyze its profitability,growth ability and solvency through financial statement data,taking into account the relatives of Internet companies.In the particularity of traditional manufacturing,this paper uses the evaluation indicators specific to Internet companies to evaluate,including: market share,number of users and average daily IP.According to the research,the current market share growth due to the demographic dividend in the online travel industry has begun to gradually decline,which has gradually weakened the internal competitive power of the industry.Under this circumstance,the internal integration of the industry began to take shape.The monopoly pattern dominated by the Department,"Ali Department" and "New America".For the merger of Tongcheng and eLong,the motive of mergers and acquisitions is similar to the internal motives of the industry,and the synergy effect has played a major role in general.However,due to the large gap between the volume and the Ctrip system,the merger is Did not significantly improve the position of Tongcheng Yilong in the industry.Finally,through the merger analysis of the same process and eLong,other Internet companies proposed mergers and acquisitions.