A Study Of Continuous M&A Value Creation Based On Resource Orchestration Perspective

In the environment of slowing economic growth,the competitive pressure of traditional manufacturing industry is increasing,and the time cost of relying on endogenous research alone to achieve technological breakthrough is too high,and enterprises urgently need to find new value creation mechanisms to build core competitiveness.In this context,M&A has become a fast track for traditional enterprises to acquire technological innovation and core competitiveness.More and more traditional manufacturing companies are entering the entertainment industry through multiple cross-border transformations and mergers and acquisitions to acquire strategic resources such as technology and brands,so as to seek transformation and upgrade and achieve integration with "Internet accelerated speed".However,the problems arising from irrational and speculative M&A are gradually emerging.Problems such as uncontrolled post-merger management have not only failed to enhance the value of the enterprise,but also weakened the value of post-merger integration.It can be seen that effective linkage and synergy of resources in successive M&As is an important prerequisite for value creation and competitive advantage of enterprises.Based on this,it is important to investigate the way of resource arrangement,the process of enterprise value creation and its effect in the process of successive M&As.Based on the perspective of resource orchestration theory,this study takes Century Huatong as the research object,firstly,it compares the literature related to resource orchestration,sequential M&A and value creation to lay the foundation for the subsequent study;secondly,it compares the four key M&A events of Century Huatong,divides them into two stages according to the resource changes after M&A,combines the internal and external environment of the industry and the strategic objectives of the company in each stage,and analyzes the value creation process from the perspective of resource identification resource structuring resource restructuring resource leveraging.Then,we analyze the synergistic effects of successive M&As from the perspectives of financial synergy,management synergy and operational synergy,and finally adopt EVA evaluation method for quantitative analysis,so as to explore the value creation effect of successive M&As of Century Huatong.Finally,the EVA evaluation method is used for quantitative analysis to explore the value creation effect of successive mergers and acquisitions of Century Huatong.The findings suggest that the resource orchestration process is as important to value creation as the resources acquired through M&A.In a dynamic environment,a firm’s strategic adjustment in response to the environment directly affects the resource orchestration process,thereby creating value for the firm.In terms of the value creation process,each acquisition is interrelated.In the resource construction phase,companies manage their resource pools by acquiring resources from outside,accumulating and developing resources internally,and divesting useless resources;in the resource restructuring phase,they shift from pioneering restructuring to rich resource restructuring;and in the resource leveraging phase,they use both business and platform leveraging to help companies create value.In terms of value creation results,successive M&As have made a qualitative leap in corporate value.Among them,a series of post-merger integration acts to lay the foundation for enterprises to play a synergistic effect,mainly reflected in the improvement of financial indicators and other non-financial indicators of optimization.Century Huatong through successive mergers and acquisitions to achieve strategic objectives,increased market share and R & D innovation capabilities,access to quality customer resources and production and sales network,effectively driving the intrinsic value creation.In addition,the value-enhancing effect is reflected in EVA indicators,where resources are effectively allocated and corporate value creation capabilities are improved.In conclusion,in the process of successive mergers and acquisitions,companies should focus on acquiring resources and developing new capabilities in a step-by-step manner,and at the same time,they should also pay attention to the process of resource orchestration as a way to achieve value creation.