Study On The Continuous M&A Performance Of TCL Technology Company Under The Localization Strategy

In the current competitive environment,many enterprises have adopted diversified expansion methods to enter new industries in order to seek new development.However,blind diversification expansion may lead to capital chain fracture and failure to optimize resource allocation.In recent years,the central and local governments have taken a number of measures to actively guide enterprises to reflect and adjust their development strategies,focus more resources on core businesses,and focus on developing advantageous industries.TCL Technology used to be a leader in the field of domestic household appliances,but after experiencing the difficult development of diversified expansion,it launched the refocusing strategy in 2016,focusing on the semiconductor display industry and transforming into an international intelligent technology group.Based on the research results of domestic and foreign scholars on refocusing and continuous M&A,this paper takes TCL Technology’s continuous M&A as a case to study.First,it describes the enterprise profile,strategic transformation,continuous M&A process and other aspects;Secondly,based on the specific situation of TCL Technology,explore the M&A motivation and strategic transformation pattern of TCL Technology refocusing strategy;At the same time,in order to explore the impact of continuous M&A on enterprises,the event analysis method is used to calculate their short-term market M&A performance,and the main component analysis,economic value added analysis and other methods are used to evaluate their performance in medium and long-term M&A.Finally,on the basis of the above analysis,the conclusion and enlightenment of TCL technology M&A are drawn.Hope it can be used for reference by TCL technology or enterprises with refocusing strategic vision.The research results show that the impact of the external environment and the internal business risks have prompted TCL Technology to implement the refocusing strategy,successfully transform TCL Technology into a high-tech enterprise through continuous mergers and acquisitions,and improve the short-term market performance and enterprise value.Through the research,we can draw the following enlightenment: First,the development of M&A should be based on the development strategy;The second is to strengthen integration and bring synergy into play after mergers and acquisitions.