A Study On Motivation And Performance Of Sotech's Horizontal Mergers And Acquisitions Daewoo

Since 2011,the global economy has continued to slump,the downward pressure on the domestic economy has increased,and the market environment has deteriorated drastically.In this situation,Sotech's printing equipment manufacturing industry is intensifying competition and the overall performance declines.Until 2013,the industry environment has not improved,and the overall situation is not optimistic.The industry's poor performance,coupled with its own factors,Sotech's performance continued to decline.For the company's long-term development,Sotech chose to expand its expansion and acquire 100% of Daewoo's shares in 2014 to realize business transformation.This article selects the case of Sotech in the printing equipment manufacturing industry to acquire Daewoo in 2014.Firstly,after referring to a large number of documents,the background,purpose and significance of this paper are explained.The related literatures at home and abroad are introduced and evaluated,the research contents and research methods are summarized,and innovative points are proposed.Secondly,the M&A and M&A performance are introduced.Concepts,M&A types,M&A theory and performance research methods;once again,introduce the development of Sotech and Daewoo,explain the M&A process,results and M&A motivations;then,the acquisition of Daewoo by Sotech from both financial and non-financial performance Conduct a comprehensive analysis to evaluate whether Sotech's M&A activities improve performance.Finally,draw conclusions and make valuable suggestions from the two aspects of M&A motivation and performance,and provide reference for the development of Sotech and other companies in the industry.This paper draws the following conclusions from the case of Sotech's acquisition of Daewoo: First,according to the current situation combined with its own development and multi-party considerations,Sotech's choice of acquisition of Daewoo is a very correct choice.Second,the performance of Sotech's acquisition of Daewoo was better than that of M&A before the performance was improved.Third,after Sotech acquired Daewoo,it integrated business with Daewoo,played a synergistic effect,increased market share,successfully realized business transformation,improved profitability,and also obtained research and innovation,production technology,product service and quality.The promotion was achieved,and the purpose of the merger was basically realized.Fourth,although the acquisition is successful,it still needs to pay attention to the subsequent integration work.In summary,the acquisition of Daewoo is the correct decision of Sotech,which brings a good M&A effect to Sotech.