Research On Evaluating Performance Of Mergers And Acquisitions Of L Company Based On M&A Scorecard

The market competition between traditional manufacturing industries has become fiercer since the 21 st century.Traditional enterprises in the bottleneck period have sought strategic transformation.Mergers and acquisitions have become one of the important means for them to expand business,seize market and optimize upgrading.As M&A transactions are becoming more and more active in the capital market,it is necessary to judge whether the impact of M&A is a positive effect,whether M&A has completed the strategic goal of enterprise transformation and upgrading,and whether the synergy effect after M&A.Therefore,it is imperative for enterprises to build a scientific and reasonable performance evaluation system of M&A,especially for large and medium-sized group companies that have been through M&A for many times.The results of M&A obtained through the evaluation system can be adjusted in terms of production mode,business mode and other aspects to promote the integration and synergy effect after M&A.On the basis of combing the academic research results of M&A performance evaluation,this paper analyzes the realistic motivation and process of L company's multi industry M&A of Internet enterprises,points out the shortcomings of the existing M&A performance evaluation methods of L Company,compares and analyzes different evaluation methods,selects the appropriate methods according to the characteristics of L company's M&A to establish evaluation system on this basis.Research and analysis show that L Company.acquired six digital marketing enterprises from 2014 to 2016,and successfully transformed from general machinery manufacturing industry to Internet and other service industries in 2016.According to the characteristics of L Company's M&A activities,the paper finally constructs a performance evaluation system based on M&A Scorecard and Entropy Method.First of all,set up specific end level indicators under the five dimensions of M&A Scorecard.Through the analysis of the indicators of L Company from 2012 to 2018,judge the development and changes of L Company in the seven years before and after M&A.Secondly,the Entropy Method is used to connect 25 single indicators,objectively quantify the weight of indicators,and get the comprehensive score of M&A performance.The comprehensive score represents the performance of the year.It is found that the development trend of each index is different from the five dimensions.Among them,the market position and market share of L Company have been greatly improved after M&A,but its operation ability,profitability anddevelopment ability all show the trend of first increasing and then weakening.The comprehensive scores of each year under the Entropy Method also show that at the beginning of M&A,the capabilities of L Company grew rapidly,and the goal of cross industry M&A was basically achieved.However,after 2017,the benefits brought by the previous M&A behavior for enterprises gradually disappeared.This shows that M&A has brought positive effects to L Company shares in the short term and rebounded in the medium and long term.Through the results of this research and analysis,L Company can make corresponding adjustments to the business plan between the group and its subsidiaries according to the evaluation results,so as to achieve better synergy.