The Analysis On The Synergistic Effect Of Qingdao Haier's Transnational M&A Of GE Appliances

Under the background of economic globalization,the division of labor between the economic systems is becoming more and more meticulous and specialization.With the implementation of China's industrial upgrading and the implementation of the“The Belt and Road" policy,the domestic market is nearly saturated.In order to seek their own long-term development and enhance their competitiveness,local enterprises have formulated their own internationalization development strategies one after another.At the same time,in order to reduce the cost of enterprises,quickly open up overseas markets,and obtain a series of competitive resources,including science and technology,enterprises should choose the way of cross-border M&A at the tactical level to serve their own international development strategy.Therefore,it is of great theoretical and practical significance to use the synergistic effect theory of mergers and acquisitions to analyze the integration effect after mergers and acquisitions,and to judge whether it is successful or not,so as to provide reference and reference for transnational mergers and acquisitions of enterprises.This paper mainly focuses on Haier's cross-border mergers and acquisitions of GE household appliances,through the summary and induction of relevant research theories on cross-border mergers and acquisitions and synergies at home and abroad,and at the same time,it analyses the development status of China's electricity industry.Emphasis is laid on the background,motivation,characteristics and the realization of synergy after M&A of the participants in this M&A,so as to gain the experience and Enlightenment conducive to the successful cross-border M&A of domestic enterprises.Firstly,on the basis of elaborating the background and significance of the research,this paper summarizes and summarizes the research status of the motivation and synergy of transnational mergers and acquisitions at home and abroad by using comparative research method.Thus,this paper confirms that through the analysis of specific cases of overseas M&A,from the characteristics of M&A,whether the synergistic effect of enterprises is produced or not,and puts forward corresponding conclusions and suggestions,which will help the article to study the synergistic effect of cross-border M&A of enterprises and determine the technical route.Then,this paper elaborates the relevant theories needed to study the synergistic effect of transnational mergers and acquisitions,and analyses the meaning and classification of transnational mergers and acquisitions,the theoretical concepts of enterprise growth,scale efficiency,market power and mergers and acquisitions efficiency involved in transnational mergers and acquisitions.Emphasis is laid on introducing the synergy theory of operation,management and finance,which is included in the synergy effect theory of cross-border M&A.It lays a theoretical foundation for the following specific analysis of the synergy effect of Haier's successful M&A of GE household appliances.Subsequently,this paper analyses the macro and industry environment of our country's electrical appliances industry,elaborates the development scale,speed,level and future development trend of the electrical appliances industry in detail,and finds out the main problems in the industry development process,such as lack of core technology,low profit margin,weak brand advantage and serious homogeneity of products,so as to successfully merge GE electrical appliances for Hou wen haier.The case introduces the background of the industry environment.Finally,this paper uses case study method to analyze Haier's cross-border M&A of GE household appliances,introduces the background and process of both sides in detail,and further elaborates the motivation of Haier Group's M&A of GE household appliances,mainly including realizing Haier's global strategic layout,acquiring brand effect and core technology,exerting synergy effect,consolidating market position and enhancing profitability.At the same time,the characteristics of Haier's direct M&A,cash payment and reasonable control of the M&A process are studied.By using data analysis method,the financial data of Haier Group from 2015 to 2018 are summarized and sorted out.Through the calculation and analysis of various financial data,the realization of synergy effect is studied.Using the selected core financial indicators data to describe the changes of enterprises' ability in three aspects of profitability,debt servicing and operation before and after M&A,it is concluded that the M&A behavior has obtained the operation synergy effect,management synergy effect and financial synergy effect,respectively.There are also risks in the M&A activities,such as financial,cultural conflicts and daily operation after M&A.Generally speaking,Haier's cross-border acquisition of GE household appliances is a successful practice.The reason why the synergy effect of M&A can be realized is that Qingdao Haier has a clear purpose of M&A,attaches importance to the integration and synergy development after M&A,and adopts a series of reasonable payment methods.Therefore,it also provides valuable experience and inspiration for our local enterprises to successfully carry out cross-border M&A.