Analysis On The Present Situation,Problems And Countermeasures Of Cross-Border Mergers And Acquisitions In Chinese Home Appliance Company

After decades of development,China’s home appliance industry has achieved world-renowned achievements,and many fields are at the world’s leading level.Moreover,at present,China is already the world’s largest white goods production base,accounting for 60%-70% of the global white goods production capacity.The three white goods production capacity is quite huge,and the sales volume is not inferior.However,although China is a big country in home appliance production,it is not a strong country in home appliances,lacking core technology and brand recognition,and the domestic appliance market is fiercely competitive,the market is approaching saturation,and the labor advantage is gradually weakening.It is necessary for Chinese home appliance companies to go out.Coupled with the outbreak of the financial crisis,some developed country enterprises are facing the dilemma of business difficulties and domestic industrial upgrading,so they have relaxed the restrictions on cross-border mergers and acquisitions.Some home appliance companies in China have taken advantage of opportunities to accelerate the pace of overseas mergers and acquisitions,providing opportunities for Chinese home appliance companies to undertake overseas well-known brands of home appliance technology.However,Chinese home appliance companies have experienced many problems in the process of cross-border mergers and acquisitions,especially the integration of resources in various aspects after mergers and acquisitions,which almost determines the success or failure of cross-border mergers and acquisitions.In addition,the single payment method and the financing difficulties also have an impact on the financial status of the enterprise to a certain extent.The developed countries often set many obstacles to the protection of the country,which is also a problem that Chinese enterprises need to face overseas mergers and acquisitions.This article takes Midea Group’s acquisition of Toshiba white goods as an example,using case analysis method,comparative analysis method,etc.,to analyze the merger case from the aspects of process,motivation and effect.The acquisition of Midea Group intends to obtain patent technology,brand effect and distribution channels related to Toshiba white goods.The data selects the quarterly and annual reports of Midea Group before and after this acquisition,respectively,based on short-term and long-term,according to some main financial indicators are to analyze the impact of the merger on Midea Group.From the analysis results,the merger not only did not affect the solvency of the Midea group,but also helped the Midea group increase its operating income and profits.It can be said that it is a successful case of overseas mergers and acquisitions in the Chinese home appliance industry.Finally,based on the current problems in the cross-border mergers and acquisitions of Chinese home appliance companies,the following suggestions are made:From the perspective of the company,we still need many efforts.This includes: obtain all aspects of the target company before the merger and the political environment,economic policies and cultural customs of the host country.After the merger,the companies should pay attention to the integration of various resources.At the initial stage of the merger and acquisition,the target company will be fully trusted,and the original business model and personnel structure of the target company should be maintained as much as possible,so as not to change rashly,so as to avoid the phenomenon of poor management and talent loss.At the same time,it will exert the effect of aggregation,adjust and improve the governance mechanism of multinational corporations,pay attention to the cultivation of international talents,and establish and improve the investment risk prevention mechanism.From the perspective of the government,we must act as a server and create a stable and good political and economic environment for foreign direct investment.Establish good international relations with countries,establish a good international image,accelerate the improvement of the capital market,provide good financing channels for enterprises,improve the legal norms of overseas investment,improve service efficiency.Since China joined the WTO,overseas mergers and acquisitions of Chinese home appliance companies have greatly improved both the number of transactions and the transaction volume.Overseas mergers and acquisitions have followed the strategic principle of “going out” and have become an important means of Chinese companies to foreign direct investment.However,due to the fact that there are still many factors affecting the effect of overseas mergers and acquisitions of Chinese home appliance companies.So this paper analyzes the current situation and reasons of overseas mergers and acquisitions of Chinese home appliance companies,while analyzing the problem,some suggestions for the development of cross-border mergers and acquisitions of Chinese home appliance companies are proposed.