Research On Enterprise M&A Behavior Driven By Industry Chain Logic

After 2015,under the policies and plans issued during the "13th Five-Year Plan" period,a new wave of corporate mergers and acquisitions has struck.From the perspective of our macroeconomic development,the traditional economy is undergoing severe transformation,and mergers and acquisitions are conducive to transformation and integration.Can effectively form the optimal allocation of social resources.Based on the analysis of the industry,mergers and acquisitions can effectively improve the industrial layout and optimize the industrial structure,so that China’s industrial structure can come out of a relatively messy situation.As the drawbacks of blindly diversified mergers and acquisitions continue to emerge,mergers and acquisitions are gradually moving towards the road of industrial synergy.In this context,since then,listed companies’ M&A activities have been more based on their own strategic development,focusing on the synergy of their main businesses.According to statistics,before 2015,only 24% of the top 50 transactions in the capital market were based on the extension or development of the existing industrial chain,and the transaction amount accounted for 36%;after 2016,the number of such M&A transactions rose to 40%,the proportion of transaction amount rose to 46%.It can be seen that mergers and acquisitions based on the logic of the industrial chain have become a trend.Industrial chain mergers and acquisitions include both horizontal and vertical directions.Compared with mergers and acquisitions under a diversified strategy,mergers and acquisitions based on the logic of the industrial chain are more stable and safer,and the concentration and anti-risk capabilities of the industry will also be improved.In response to the call of the national policy,National Ceramic Materials implemented an industrial chain M&A strategy based on the company’s future development plan,that is,through vertical mergers to extend the upstream and downstream industrial chain and horizontal mergers to expand the company’s business scale.The company revolves around its main business.A series of mergers and acquisitions have been conducted.As of 2018,some of the company’s business segments have achieved industrial chain integration through mergers and acquisitions,broadened profit channels,and increased market share.To this end,this article takes Sinocera Materials,a leading enterprise in the ceramic powder materials industry,as the research object,and analyzes the impact of this merger strategy on the company through the early layout of its industrial chain mergers and acquisitions,the integration process,and the realization of performance.And how to make use of the effect of industrial chain mergers and acquisitions,in order to provide some possible suggestions for other companies inside and outside the industry who want to conduct industrial chain mergers and acquisitions.