Research On The Cross Border Mergers And Acquisitions Of Household Electrical Appliance Industry

After decades of development,China's household electrical appliances business has become the world's largest country of home appliance,but not a strong country.Compared with developed countries,China's household electrical appliances still has some distance in technology and brand.Domestic household electrical appliances' market competition is fierce and cost is rising,the price war is continuing.It is necessary for the Chinese household electrical appliances enterprises to go out.What's more,large enterprises of developed countries gradually stripped of household electrical appliances business.Industry is restructuring and upgrading.It provides an opportunity for our household electrical appliance enterprises to undertake overseas' well-known brands of home appliances technology.In he future,China's household electrical appliance industry will look around the world by transnational merger.This paper summarizes the related theories of transnational mergers and acquisitions,which are divided into M & A motives,M & A process,M & A effect and M & A risk.Based on this theory,from the respective of household electrical appliances,summed up the situation of cross-border mergers and acquisitions of household electrical appliance enterprises,to explore the characteristics of cross-border mergers and acquisitions of household electrical appliance enterprises and the existence of the problem,founded that the merger strategy is not clear.Chinese enterprises do not understand the acquisition target,lack of intermediaries which are familiar with cross-border mergers and acquisitions,single payment and other issues.Then,based on the case analysis of Midea Group mergers and acquisitions of Toshiba Life style,using comparative analysis,qualitative and quantitative methods,this paper analyzes the whole process of the transnational mergers and acquisitions from motivation of merger,process,financial of Midea Group and potential risk,making corresponding suggestions.For enterprises,in the early,it should adhere to independent management,must not eager to integrate in the case of not be familiar with both sides;In later stage,integrating of human resources,retaining the core talent;In addition,conducting cultural integration,strengthen cultural exchanges.From the country,It should vigorously develop the capital market to provide a good financial environment for cross-border mergers and acquisitions;cultivate intermediaries which are familiar with cross-border mergers and acquisitions,improving supporting facilities for the enterprise to go out.The innovation of this paper lies in,At present,there are a lot of literatures about cross-border M & A of enterprises,but few of them are related to the household appliance industry,specific analysis of cross-border mergers and acquisitions is less.Through the study of this topic,it is found that there is a single payment method in the cross-border M & A of household electrical appliance enterprises.This paper advocates the diversification of payment methods,dispering risk.Hoping that through the study of this paper,it can provide some experience and reference for the domestic household appliance enterprises in the future.The deficiency is the lack of analysis of the long-term performance of mergers and acquisitions.