DSBJ Continuous Merger And Acquisition To Create Value Case Study

In recent years,with the support of a series of policies issued by the state,China’s electronic manufacturing industry after years of study and exploration,has been among the world’s top in a number of fields,the realization of "overtaking on the curve".The industry is technology-driven and competitive,and the time cost of achieving technological breakthroughs is too high by endogenous research alone.Therefore,frequent mergers and acquisitions become a shortcut for domestic enterprises to improve their core competitiveness.How can enterprises create value and improve investment effect through continuous mergers and acquisitions?The existing researches on the value creation of successive mergers and acquisitions mainly start from the static factors such as the previous merger and acquisition experience,the characteristics of the management and the transaction mode of mergers and acquisitions.At the same time,the theory of resource arrangement is not widely used in the field of mergers and acquisitions.Based on this,based on the perspective of resource orchestration,this paper attempts to take dongshan precision’s continuous mergers and acquisitions from 2014 to 2018 as the research object to explore the process and effect of dongshan precision’s value creation through continuous mergers and acquisitions.Based on the theory of resource orchestration,the theory of synergistic effect and market power,this paper summarizes the literature related to continuous m&as,value creation and resource arrangement,and reviews the existing literature.On the basis of the theory and literature support,this article combed the dongshan precision four m&as,according to the changes of the elements of the business is divided into two after the merger acquisition phase,respectively on two stages from the build resource portfolio formation ability,the use of resources,integration of resources value three aspects to analyze the value creation process,and combined with the company’s development strategy evolution summarize all mergers and acquisitions,the correlation between the last based on resources integration effect,the event study method and the financial indexes qualitative and quantitative analysis of the effect of value creation.The results show that,from the perspective of value creation process,continuous m&as events are interrelated with each other,in which resource orchestration is very critical.Enterprises will go through the process of constructing,stripping and optimizing resource combination.With the deepening of integration,the integration strategy will change from rich to pioneering reorganization.Value creation comes from the way of industrial chain leveraging and platform leveraging.From the perspective of value creation effect,continuous m&as can bring value leap for enterprises on the whole and achieve investment expectations.Among them,the value effect is the first and most significant in non-financial aspects,such as optimization of business and product structure,enhancement of marketing ability and promotion of industry status.The market effect is slightly obvious in the short term,while the financial performance lags behind but has great potential for later development.In short,in order to create value and improve the effect of m&as investment,enterprises need to pay attention to the arrangement of resources,reasonably use the integration strategy,and grasp the way of value creation.It is hoped that these findings can provide enlightenment for Chinese enterprises to carry out continuous m&as,create value and achieve investment effect.