Performance Evaluation Of M & A Based On Industrial Evolution

With the new round world industrial transformation and upgrading of the manufacture industry, as well as the Internet tideal wave, the home appliances enterprises of China started a new round of mergers and acquisitions. The home appliances enterprises have undergone a series of M & A from its inception to date, according to the personalities of industrial evolutional stage, there are three stages home appliances enterprises have undergone. In this paper, follow the logic of "the industrial evolutional stage—M & A motive —M & A performance". On the basis of previous studies, we construct a M & A performance evaluation system for the home electrical appliances enterprises based on the perspective of the evolution of industry,and choose typical home appliances manufacturing enterprises Qingdao Haier and TCL as the research object, using method of comparative case studies. Through the course of the two companies M & A activities, M & A feature, M & A performance is analyzed. We found that the evolution of the industry consolidation trend will indeed promote mergers and acquisitions activity occurs. Companies at different stages of evolution of the industry will take a different type of acquisition options. In the opening stage, diverse merger is the main acquisition option. Horizontal merger is more likely to choose in the scale stage, while in the focus stage is mainly vertical and diverse mergers and acquisitions. In the opening stage, government--riented M & A performance is very good. But in the scale and focus stage, the M & A performance of market oriented is better. In the stage of scale, market-oriented M & A performance is better than government-oriented significantly.