Research On The Motivation And Performance Of M&A Of Internet Enterprises In My Countr

Today’s new generation of network technology has been making innovations and breakthroughs,and the development trend is going deep into the direction of digitalization,networking and intelligence.For Internet companies,this is both a challenge and a new development opportunity.At present,the business scope of Internet companies is relatively broad,and it is necessary to use acquisition means to deepen in one or even more directions.However,vertical merger and acquisition is a relatively convenient and quick way,which can quickly realize the company’s strategic goal of globalization and diversification.Taking Alibaba’s acquisition of "Eleme" company as an example,this paper has mastered the frontier development and research results on M&A motivation and M&A performance through in-depth research on a large number of documents,and summarized the M&A motivation theory and M&A performance evaluation theory.Under the background of M&A,this paper analyzes the dynamic behavior of M&A,and evaluates the reaction degree of market participants to M&A activities by using the event study method.Based on the Balanced Scorecard model,this paper comprehensively measures the effect of this M&A from four aspects: corporate finance,market customers,internal processes,learning and growth,explores a reasonable evaluation method of M&A performance,and at the same time,suggests the matters that must be paid attention to in the acquisition process,so as to effectively avoid the acquisition losses and the resulting economic losses.The acquisition of "Eleme" by Alibaba,an industry giant,provides a very good example for similar mergers and acquisitions,and the experience gained from this provides a great reference for other companies in the same industry.In terms of M&A motivation,Alibaba mainly hopes to develop local service areas,make use of synergy,improve logistics and distribution,improve marketing system and expand ecological boundaries;"Eleme" accepted the acquisition because it hoped to get safe financial support.In addition,the company also aims to expand user channels and strengthen the company’s strength.Using the event research method to evaluate the merger results,Alibaba’s excess return rate is obviously lower than the expected return two days after the event.From the aspect of stock price fluctuation,it shows that the market does not recognize the "Eleme" event of Alibaba’s acquisition in the short term.Twenty-four days after the incident,Alibaba’s cumulative excess rate of return turned negative to positive and then fluctuated slightly according to the zero value.Based on the analysis of the balanced scorecard,the results show that although Alibaba’s solvency has weakened in a short time after the acquisition,the related indicators such as profitability,operation and service development are on the rise.The scale of "Eleme" users has obviously increased.After the combination of "Eleme" and "Koubei",a local service company has been formed,and the management fee rate and sales expense rate of the enterprise have gradually decreased,thus improving the operation quality of the enterprise.Alibaba has always attached great importance to the cultivation of talents and the service to customers,increasing research investment year by year.By acquiring "Eleme",it can fully obtain the life and transaction information of customers,and further promote digital management.Based on the results of this study,this paper puts forward some suggestions and Enlightenment for relevant enterprises to reasonably select M &A objectives,determine reasonable payment methods and strengthen post M &A integration.