Research On Performance Of Cross-border M&As In Chinese Household Electrical Appliance Enterprise Take Haier Purchase Sanyo For Example

M&A, as the main way of external expansion, plays an important role in promoting enterprise to optimize the allocation of resources and achieving economies of scale. Along with the economic globalization and the increasingly fierce competition in the market, cross-border M&A has gradually become the main theme of the rapid development of enterprises. China has become the top producer of white goods completely from scratch and poor after over 30 years of progress. Chinese household-appliance industries began to find new advancement opportunities, expend overseas market share and implement the strategy of internationalization and globalization through cross-border M&A, with the pressure of the increasingly fierce competition in the household-appliance industry market, instability of the development of the real estate industry, appreciation of the RMB as well as the continued growth of labor costs.At present, many household-appliance industries in China have begun to implement the cross-border M&A. However, these industries often encounter some risks and difficulties in the process of M&A and even lead to the failure of the M&A because of the lack of theoretical achievements and experience. This paper explores how to improve the competitiveness of household-appliance industry and improve the performance of M&A, through the study of the performance of household-appliance industry leading enterprises—Haier group at the part of cross-border M&A, which has the important practical significance, providing experience and lessons for China’s household-appliance industry about cross-border M&A.Guided by the related M&A theory, the paper will value the performance of M&A by analysing a typical cross-border M&A case that Haier merged Sanyo with a method combining criterion study and case analysis.Firstly it’s an introduction, describing the background and significance, and introducing the research methods: quantitative analysis and qualitative analysis, case analysis and comparative analysis.Then the next chapter introduces the cross-border M&A and the M&A performance theory from four parts—Definition,theory of cross-border M&A,theory of cross-border M&A,effect cross-border M&A,performance evaluation method.Afterwards, with the method of case analysis, by studying a typical case in the household appliances that Haier merged Sanyo, the paper will assess if this enterprise achieve the desired results in the M&A case through valuing the performace brought from M&A by the way of aggregate, financial and non-financial analysis, and finally draw the enlightenments and offer some suggestions on cross-border M&A.