Financial Strategic Analysis On Acquisition Of Kelon By Hisense

Since the middle of 1990s there have appeared many waves of merger and acquisitions in china's household appliance industry as integration has become a key way to expand and develop business. In many recent M&A cases, the acquisition of Kelon by Qingdao Hisense is undoubtedly is very typical in its strategy of integration, and in this acquisition Hisnese makes use of various tactics so as to increase business risks related to this acquisition to the minimum level. Hisense's strategy in this acquisition makes sure the effectiveness of cash flow as a whole during the integration of two companies, and also is consistent with the prudent principle which Hisense always follows. Therefore, the author concluded Hisense's experience and the reasons of successful acquisition are useful to those ambitious large or middle-size enterprises who are looking for their target companies.This thesis first gives a brief introduction of background of thesis and issues to be explored in chapter one. Some related business combination theory, financial strategies and other recent development about combination are introduced in chapter two. Then the two companies are briefly outlined in chapter three. Chapter four describes the current situation of china household appliance industry and analyzes the development trend, and then discover the Hisense strategy direction. Also the chapter four deeply analyze the Hisense financial strategies used in the acquisition of Kelon, which included macro-financial strategic environment, SWOT analysis, investment and financing strategies. After all, the thesis reaches four conclusions and gives recommendations, which are noteworthy by other fellow companies.