Analysis Of Synergistic Effect Of Midea Group's Holistic Listing

Since the reform of the shareholder structure been carried out,more and more enterprises adopted spin-off listing to optimize ownership structure and improve enterprise industry status in the early time.However,its disadvantages had been exposed gradually,like connected transaction and the damage of the interests of shareholders,and holistic listing has gained more attention.The holistic listing may decrease connected transaction and strengthen its independence,produce the synergies and integrate internal resources with external resources to enhance its competition.Meanwhile,the holistic listing is beneficial to improve the capital market and promote the healthy development of the stock market.Therefore,it is vital for the development of the enterprises and the capital market.In 2003,Midea Group adopted the way of stock exchange M&A to realize the holistic listing,and it has gained integration in management,operation and financial aspects.The market reaction has been proven to be very good,and financial effects has been advanced to some degree.As the first successful case in China,the holistic listing of Midea Group can provide the experience for reference for these enterprises propose to adopt the same way.This article states research background and meaning,retrospects the related researches of scholars at home and abroad about holistic listing and synergistic effect,and introduces the related concepts and theories of synergistic effect.Besides,linking with the case of Midea Group,this article analyzes the implementing paths of management synergy,operating synergy and financial synergy,then evaluates its results.In the aspect of management synergy,integration of human resource,revocation of the secondary industry group and attraction of strategic investors are analyzed.Management synergy evaluation is from the aspect of cost reduction and the improvement of asset management.The study found that asset management had been improved effectively,but cost reduction still had to be improved.It had realized the management synergy as a whole.As to operating synergy,carding value chain,simplification of product types and managing brand by Group had been analyzed.Operating synergy evaluation is from the aspect of the profitability and growth ability.It found that they both had strengthened and operating synergy had realized.In the aspect of financial synergy,decreasing capital cost,reducing the related transactions and adopting stock exchange M&A are analyzed.Financial synergy evaluation is from the aspect of financial risk control effect,tax-efficient effect and anticipated effect.It found that these three had been strengthened obviously and Midea Group has gained favorable financial synergy.At last,this article summarizes the experience of Midea Group's holistic listing and comes up with several notices in order to help other enterprises propose to the holistic listing.Improvement the efficiency of corporate governance,carding value chain and reducing financial risk are important experiences from realizing synergistic effect of holistic listing.Meanwhile,it should be noticed that relevant departments should strengthen the supervision of operation mode of holistic listing,especially the information disclosure of main shareholders and supervision of stock pricing.They should establish the clear legal responsibility of main shareholders and intermediaries in holistic listing.Besides,the holistic listing Group should not focus on the market effect,but to establish a sound internal control system so as to do the follow-up integration better and fully realize the synergistic effect.