Research On Motivation And Performance Of Cross-Industry Continuous M&A

In recent years,the Chinese government put forward new requirements to manufacturing industry,resource-intensive and labor-intensive manufacturing enterprises losing competitive advantage,market declining competitiveness,bring certain impact to the traditional manufacturing industry,at the same time,the government increased the policy support for the emerging industry,especially push,5G technology popularization of Internet technology and the concept of " Internet +" popularization,It has brought strong support to the Internet market.In order to enjoy the policy dividend,some traditional manufacturing enterprises further adjust their industrial structure and realize industrial transformation and upgrading through mergers and acquisitions.As a traditional manufacturing industry,Century Hua Tong grasped the opportunity of The Times and realized the goal of entering the Internet game market by means of cross-industry merger and acquisition.It successively acquired Internet game enterprises,expanded the market share of the game,opened up the overseas game market,and realized the development mode of dual main business of auto parts production and Internet game.This paper analyzes the whole M&A process of Century Hua Tong and provides corresponding suggestions for the continuous cross-industry M&A of traditional manufacturing enterprises.In this paper,the background and significance of cross-industry continuous M&A are taken as the starting point to determine the research ideas and framework.Through literature review to determine the content and methods of the research,with relevant theories as the theoretical basis of the research;This paper introduces the continuous merger and acquisition process of Century Hua Tong,and then obtains the motivation of the enterprise’s continuous M&A across the industry.It uses the event research method,financial index method and economic value added method to judge whether the continuous M&A across the industry is successful.Finally,it draws the research conclusion and enlightenment.Based on the analysis of the current situation of market and enterprise development,this paper concludes the practical significance of the development mode of double main business.Through the case study of the continuous M&A of Century Hua Tong,the enterprise has achieved the goal of entering the new market--Internet game market,and has expanded the market share and market influence of Internet game at home and abroad through continuous M&A.In the early stage of M&A,the indicators of performance evaluation are good,but in the later stage,there is a decreasing trend.Century Hua Tong ’s cross-industry continuous M&A has achieved the enterprise target and increased the market value of the enterprise.It is suggested that the enterprises carrying out cross-industry M&A can select the target enterprises carefully,advance the M&A process step by step,integrate enterprise resources timely,and guard against the long term risks brought by M&A.It is hoped that the experience of this paper can provide reference for the development of other traditional manufacturing enterprises in the industry.