Motivation And Effect Analysis Of Cross-industry M&A Transformation Of Traditional Enterprises

Under the "new normal" of economic growth,some traditional manufacturing enterprises with overcapacity and development bottleneck have seized the opportunity of supply-side reform,hoping to use exogenous forces to promote enterprise transformation and upgrading.Emerging industries have become a "sweet spot" for deepening industrial integration,and the game mergers and acquisitions fever,film and television mergers and acquisitions,and education mergers and acquisitions have emerged as the times require.The revision of the "Private Education Promotion Law" opened the door to the capitalization of the education industry.The characteristics of the education industry’s anti-cyclicality,light assets,and high cash flow are favored by traditional manufacturing enterprises.However,after cross-industry mergers and acquisitions of traditional enterprises,the operation mechanism and management model of the two main businesses are quite different.Can traditional enterprises successfully transform after mergers and acquisitions? Is the effect of mergers and acquisitions a big discount or icing on the cake? All are questions worthy of consideration.Based on this,this paper takes the traditional ink manufacturing company K’s cross-industry M&A education and training L company as an example to study the motivation and effect of its M&A transformation.This paper first introduces the research background and significance,summarizes the motivation theory and performance evaluation methods cited in the case study on the basis of sorting out the relevant literature,and then analyzes the current situation of cross-industry mergers and acquisitions.Then,the selected cases are analyzed,including company profile,M&A process and M&A integration,and then the motivation and effect of M&A transformation are deeply explored.The study found that K company seeks transformation and upgrading based on the consideration of external economic transformation,policy reform and weak internal growth;after cross-industry mergers and acquisitions,K company’s market performance is average;profitability and operational capabilities have been improved and improved;economic added value has increased significantly.In addition,the performance commitment was exceeded,and diversified operations were realized,and the main business was gradually tilted to the education business to promote the transformation of the enterprise.In general,the cross-industry merger and acquisition transformation of Company K was successful,but currently affected by the policy adjustment in the education industry,Company K was forced to undergo a second transformation,and the follow-up development requires continuous attention and investigation.The case study also shows that cross-industry mergers and acquisitions are feasible for traditional enterprises to change their development predicaments.However,affected by factors such as industry development trends and national policies,cross-industry mergers and acquisitions have certain risks and instability.Companies should strengthen strategic integration,shape core competitive advantages and actively respond to continuous transformation to prevent related risks;while other traditional companies want to achieve transformation through cross-industry mergers and acquisitions,they should choose carefully when selecting M&A targets in the early stage;Industry integration,maintain policy sensitivity,and dynamically adjust strategic layout to achieve long-term stable and sustainable development.