Analysis On Motivation And Performance Of Haier’s Merger And Acquisition Of General Electrical Appliances

Merger and acquisition,as the main way of external expansion of enterprises,plays an important role in promoting enterprises to optimize the allocation of resources and achieve economies of scale.In recent years,the market competition of household appliances enterprises in China has become increasingly fierce,and household appliances enterprises have begun to implement cross-border mergers and acquisitions to seek new opportunities for development.However,due to the lack of theoretical achievements and practical experience in cross-border M&A in China,enterprises often encounter some risks and difficulties in the process of M&A,and eventually even lead to the failure of M&A.This paper takes the merger and acquisition between Haier and General Electrical Appliances as a case study.Firstly,it summarizes and combs the background significance of the study and the related theories of merger and acquisition.Then in the case part,the basic situation of Haier’s merger and acquisition of general household appliances and the motivation of this merger are elaborated.From three aspects of market performance,financial performance and economic added value,the focus is to explore whether Haier’s merger and acquisition of general household appliances has achieved positive financial performance in the period under study.Finally,this paper draws conclusions based on the analysis results of this M&A event,and then summarizes the experience and Enlightenment of cross-border M&A of Chinese enterprises,with a view to providing reference and reference for cross-border M&A of Chinese enterprises.