| With the further acceleration of economic globalization,market economy becomes maturer with each passing day in China,and the competition among enterprises becomes increasingly fierce.Especially the industry with saturated market,in order to take the market,enhance competitive strength,get more resources and profits,enterprises often achieve their strategic goals by merger and acquisition(here in after referred to as M&A).The market of household electrical appliance industry in China is approaching to saturation,and there are a lot of M&A activities among major household electric appliance enterprises in recent years.However,integration is not as easy as M&A.Effective M&A integration is the key of successful M&A and which will contribute to the further development of the enterprises.M & A integration often involves many adjustments of the enterprises,such as organization,business,personnel and finance.This paper takes the merger of Hisense and Kelon as the research object.Because it took Hisense a long time to integrate Kelon and the integration involved many aspects,this paper sorts out the M&A integration in detail by the study of this case,makes a concrete analysis on the effects of integration on enterprise's relevant performances,so as to provide relevant suggestions for other enterprises' M&A integration in household electrical appliance industry.This paper sorts out the relevant aspects in the process of Hisense integrating Kelon from 2005 to 2013,and makes a specific time division which could intuitively reflect the effects of integration on corporate performance in later period.Then by the quantitative analysis method,this paper carries out vertical analysis on the effects of M&A integration on Kelon's market performance and financial performance in detail,and selects the representative enterprises in the same industry,such as Haier,GREE,Mei Ling and Kelon,for horizontal analysis.From 2005 to 2013,in the whole M&A integration,the overall performance of Kelon was improved for operating receipt and operating profit.Although after 2013,the white goods market shrinks due to the environment,enterprises waged a brutal price war,Kelon's operating receipt and operating profit greatly were improved compared with that before M&A integration.This owes to the 8-year full-scale integration.Overall,the integration played a positive role in Kelon's performance.It can be seen in the stages,the integration in earlier stage focused on organization,personnel and assets,the integration in later stage focused on business and finance.Kelon's integration of organizational structure and personnel in earlier stage,reasonably controlled the cost,reduced the cost and expense ratios,while motivated the employees,and improved Kelon's operating receipt.In the early stage of M&A integration,Hisense also centrally integrated Kelon's assets,improved Kelon's turnover of total capital and inventory turnover ratio,which were at a higher level in the industry.But Kelon's turnover ratio of receivable was at a low level in the industry,it took a long time for accounts receivable to return.The integration in later stage focused on business and finance.For financial integration,Kelon established a series of new financial system to enhance company's debt paying ability,but the result was not as good as expected.For business integration,Hisense re-divided the internal business of the group,assigned the optimal resources related to white goods to Kelon,so Kelon's all capital earnings rate was greatly improved compared with that of the previous years,and the operating profit margin in this stage was also obviously increased.In 2013,the integration was basically completed,Kelon's business scale was steadily improved,and the economic benefit was also increased.By the research of Kelon's M &A performance in stages and in aspects,this paper puts forward the M & A integration proposal from the aspects of business,organizational structure,human resources and finance,hoping to have some reference value for similar cases. |
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