Analysis On The Synergistic Effect Of SJ Huatong’s Continuous Cross-Border Mergers And Acquisitions

More and more traditional enterprises in China are achieving diversification development or strategic transformation through mergers and acquisitions.However,the risks such as business transformation and goodwill impairment brought by cross-border mergers and acquisitions are difficult to avoid,even worse,consecutive mergers and acquisitions further magnify these risks.Therefore,this paper studies the synergistic effect of traditional enterprise continuous cross-border mergers and acquisitions,analyzes and evaluates the realization path and effect of synergistic effect in the merger and acquisition process of the case company,so as to provide possible reference for the strategic choices and M&A development for similar enterprises on similar issues.This article takes the case company SJ Huatong as an example.The company’s original main business was the automotive parts industry,belonging to the traditional industry.In the face of the development bottleneck,the company successfully achieved double main business operation through continuous cross-border mergers and acquisitions of several companies in the Internet game industry.First of all,this paper reviews the literature on continuous crossborder mergers and acquisitions and synergies.Next,by analyzing the continuous merger and acquisition process of 7cool.net,Tuyoo Software,Diandian Interactive and Shengyue Network through SJ Huatong,it was found that SJ Huatong achieved its goal of entering the Internet game through merger and acquisition.The three main motives of its merger and acquisition are: diversifying corporate risk,having a good outlook for new industries with a lower threshold for entry,and realizing value growth.Again,through the case study and financial index analysis,it was found that the company generated positive operational and financial synergy effects after the merger and acquisition,but the management synergy effect was not significant.Analysis of non-financial indicators reveals that the company’s acquisition has generated positive strategic synergistic effects.Found from the synergistic and substitute effects generated by the synergistic effect,the complementarity effect of the SJ Huatong cross-border merger mainly lies in the capital support and management collaboration of the parent company,the industrial chain synergy between subsidiaries,and the resource substitution between the old and new industries for the substitute effect.Among them,the industry chain collaboration of complementary effects needs to be further improved,and the substitute effects are relatively significant.That is,SJ Huatong achieved financial,operational and strategic synergistic effects in continuous crossborder mergers and acquisitions,while management synergistic effects and inter-industry complementary effects were not effective.Finally,through the whole text introduction and analysis,it is concluded that continuous cross-border mergers and acquisitions can produce synergistic effects,and this synergistic effect is related to corporate strategic layout,at the same time,in the different stages of continuous mergers and acquisitions,the performance of synergistic effects is also different.