The Study On The Cross-industrial M&A Performance Of Nanyang Shares And TOPSEC

In recent years,China's economic restructuring and industrial transformation and upgrading have been accelerated with the release of reform benefits and the stimulus of policies to promote merger and acquisition(M&A)integration.Meanwhile,with the rapid development of science and technology,a series of emerging industries such as electronic information industry and Internet big data are constantly impacting traditional industries.Besides,due to the slowing technological updates of the current economic environment,rising raw material prices,overcapacity and overstock,some China's traditional manufacturing corporations have to face tough conditions.They have to deal with the general decline in operating profits and the limited development space.Therefore,a majority of manufacturing corporations began to seek a new development model,listed corporations expect to achieve strategic transformation and upgrading through M&As,absorption and integration of high-quality emerging enterprise.This is one of the effective means to enhance the strength of enterprises and change the sluggish operating conditions.Consequently,the number and scale of cross-industry M&As of listed companies exhibited a steady growth trend year by year.Facing the increasingly active wave of M&As,how traditional enterprises deal with these opportunities and new challenges gain the public's focus.Based on the research of domestic and foreign scholars on the relevant concepts and theories related to M&As,this paper selects the M&A case of traditional cable enterprise Nanyang Shares and TOPSEC which belongs to information security industry as the research object for case analysis by using the research method of case analysis.Firstly,the literature of M&As' performance and motivation around the world is reviewed,the relevant theories are classified,and then the research background is introduced,as well as the research contents and methods are explained.Secondly,the case overview of the both sides of the M&A parties,the M&A process,the merger integration and other aspects are elaborated in detail,then the performance and synergies related to this M&A case are evaluated by comparing their financial and non-financial indicators.Finally,a conclusion is made.It includes the essential problems which revealed from the results of the case analysis and suggestions with enlightening significance.Moreover,it can be found from this case study that the transformation and upgrading of the traditional manufacturing industry can be effectively promoted by merging the new industries with great potential.contributing to exploring the new growth points for the long-term development of enterprises.In summary,a traditional enterprise under the condition of the development dilemma can use the experience ofNanyang shares of cross-industry M&A case for reference,leading to the promotion of sustainable development through similar approaches.