Research On The Value Creation Of Diversified Mergers And Acquisitions In Shanghai Industrial Corporation

National defense force is the foundation to guarantee the wealth of a country.In recent years,China's national defense budget has been growing continuously.In order to reduce the budget pressure of national expenditure and make the military industry fully competitive,various policies have been combined,so that China is currently in the ownership reform that encourages the military industry to absorb a lot of private capital.At the same time,with the promotion of civilian use of military products and the increasing degree of civil-military integration,more and more listed companies begin to focus on the military industry.Through merger and acquisition,listed companies can quickly break down barriers,enter the military industry,explore new markets,and obtain new growth points when the original industry cannot grow,so as to improve market competitiveness.In this context,whether private enterprises can achieve value creation after the merger and acquisition of military enterprises,how the effect of the merger and acquisition,whether they can achieve pre-set goals before the merger and acquisition,and other practical issues need to be further studied.This article through to mergers and acquisitions related literature and theory to comb,selected the related diversification in the enterprise diversification M&A as the research object,combined with a vivid case-related diversification M&A related diversification M&A Huayu company,Shanghai engineering company with its M&A motivation when combined with mergers and acquisitions macro environment as a starting point,from the qualitative analysis and quantitative measurement of value creation analyzes two aspects to the event.Qualitative analysis mainly analyzes the non-financial benefits generated by the relevant diversified M&A,mainly referring to the synergy effect that can be achieved after the completion of M&A integration.In terms of quantitative measurement of value creation,this paper mainly USES the event research method,the method of economic added value and the method of financial index analysis to measure the value creation results of the relevant diversified M&A case.Through analysis,it is concluded that this merger and acquisition is a relatively successful one on the whole,with good market response and significant synergy effect and financial improvement of the group enterprises,thus realizing value creation.However,there are also some problems in the process of merger and acquisition,such as the merger premium is too high,the stock ownership is too dispersed.Based on this,this paper summarizes the advantages to inspire other listed companies to carry out diversified mergers and acquisitions.Aiming at the existing problems,the paper puts forward the corresponding optimization Suggestions in order to provide reference for the development of related diversified mergers and acquisitions of Chinese enterprises and promote the orderly and healthy development of the economy.