Research On Motivation And Performance Of Wingtech’s "Snake Swallow Elephant" Cross-Border M&A

With the development of The Times,the competition of enterprises in the market has intensified.In order to seize the market,enterprises continue to research and development to reduce product costs,enhance the operation and management ability.However,the saturated market has been difficult to meet the current development needs of enterprises,especially in the communication industry,the product and customer needs are updated faster and faster.So companies urgently need to break through and seek new profit points to break the deadlock.Therefore,the emergence of cross-border M&A will break the industry barriers to prevent outsiders,and play a role in effectively exploring new markets.The thesis selects Wingtech Technology,a leading ODM enterprise in the communication industry,and takes the case of cross-border acquisition of Nexperia Group as the research object.Starting with the macro background and the enterprise situation,combining with the future development trend of the country,and using data to analyze the motivation of Wingtech Technology to choose small-scale enterprises to merge large-scale enterprises.By understanding the cross-border M&A process,the effect of enterprise integration in the integration stage is expounded from the two aspects of short-term performance and longterm performance.Short-term performance is reflected in the capital market through the stock price,from the results found that Wingtech Technology "snake swallow elephant" cross-border M&A in the short term is not favored,but from the long-term performance shows that enterprises gradually complete the integration of supply chain and sales channels,increase the core technology research and development personnel,realize synergies,the rapid growth of product sales,long-term performance is better.Finally,while summarizing the experience of Wingtech Technology in successfully implementing crossborder M&A,we put forward suggestions.Wingtech Technology’s cross-border M&A provides a new perspective for other enterprises to bypass industry barriers,and provides mergers and acquisition integration ideas and management experience for other enterprises interested in entering the semiconductor industry,and provides reference direction for other enterprises to learn.