Research On Motivation And Performance Of M&A In Cross-Border E-Commerce

With the development of information technology and the wide application of the Internet,the fierce market competition promotes the mergers and acquisitions of Internet enterprises to become more frequent,and mergers and acquisitions have become a way for enterprises to grow rapidly and achieve their strategic goals.Since 2014,China’s mergers and acquisitions market has developed rapidly,with the number and scale of mergers and acquisitions hitting new highs for many times.Cross-border e-commerce,as an important part of Internet enterprises,has developed at an astonishing speed in recent years.Taking the acquisition of Net Ease Kaola by Alibaba Group as an example,this paper analyzes the background,motivation and performance of cross-border e-commerce mergers and acquisitions in China’s Internet industry,so as to provide references for enterprise decision makers.Taking the acquisition of Net Ease Kaola by Alibaba as an example,this paper analyzes the motivation of the acquisition from the perspective of external market and internal operation.The acquisition of Net Ease Kaola by Alibaba is to seek resource complementarity and synergistic effect,seize market share and enhance competitiveness,obtain strategic advantages and enhance brand value,reduce transaction costs and expand economic benefits.Through this merger and acquisition activity,Net Ease has eased the financial pressure and focused on the advantageous areas;Therefore,this merger for both sides is based on their own interests.Financial index analysis and non-financial index analysis are used to evaluate the M&A performance.According to the M&A performance evaluation results,the M&A brings positive benefits to Alibaba in the short term,and the M&A effect can produce effective feedback on the M&A motivation.The current M&A case of Net Ease Kaola by Alibaba is relatively successful.This paper summarizes the horizontal merger of Alibaba put forward countermeasures and suggestions.Firstly,rational merger and acquisition is needed to achieve synergy.A successful merger and acquisition should be oriented to achieve win-win results and have reasonable merger and acquisition motivation.The second is resource integration to ensure performance.After merger and acquisition,enterprises should fully strengthen the integration of business and resources of both sides,highlight the complementary advantages of both sides,and achieve the purpose of improving the economic benefits of enterprises.Finally,ensure fair competition,beware of monopoly,and promote the healthy and sustainable development of the market.As the first M&A case in the domestic cross-border e-commerce industry,this case has certain reference value.