Research On Motivation And Performance Of Haier's Cross-border Merger And Acquisition Of GEA

Since the reform and opening up 40 years ago,with the development trend of economic globalization,the links between countries and enterprises have become more and more close,and Chinese enterprises have been involved in the wave of economic globalization in the world.As a traditional industry in China,the competition of household appliances industry is fierce.With the introduction of favorable policies such as "The Belt and Road",Haier has accelerated the pace of mergers and acquisitions in overseas markets as a representative of the household electrical appliance industry.This paper studies the typical case of Haier's cross-border merger and acquisition of American General Electric Appliance Business(GEA)and draws some conclusions and enlightenments through the analysis of its motivation and performance,which can provide reference value for other enterprises' cross-border merger and acquisition.Firstly,it introduces the research background,literature review,application value and related theory of this paper,which paves the way for the case study of this paper.The second part is case analysis.This paper introduces Haier's cross-border M&A case,the process of M&A and the characteristics of M&A.In the aspect of motivation research,this paper makes an analysis from the perspective of market,technology and strategy.In the aspect of performance research,this paper uses financial index method,non-financial index method and event study method to make a comprehensive analysis.Finally,the case conclusion and enlightenment.Case conclusion: Firstly,the purpose of M&A is basically achieved.The purpose of Haier's cross-border M&A GEA includes avoiding barriers to entry,opening new markets,making up for Haier's technical shortcomings,facilitating the global layout after the M&A of GEA,and realizing resource complementarity in large-scale operation after M&A,which can enhance the competitiveness of enterprises,etc.Secondly,the injection of new assets has brought about an increase in growth capacity.Haier's overseas mergers and acquisitions have brought about a large-scale improvement and enhanced bargaining power.At the same time,with the development of new markets,business income,operating profits and total assets have been growing rapidly,and market investors have also given a positive response.Thirdly,the strategy of globalization has achieved remarkable synergies.After the merger and acquisition of GEA,Haier's market competitiveness has been improved obviously,forming a multi-brand,multi-level Haier,and realizing the global business strategy.Moreover,through the integration and sharing of resources throughout the process,Haier has brought into play the coordination of procurement,R&D,market and supply chain,and realized the integration effect of complementary resources advantages and 1+1>2.Therefore,this paper draws inspiration.That is to say,in the process of overseas mergers and acquisitions,enterprises should define their own strategic objectives,do a good job of pre-evaluation,step by step overseas mergers and acquisitions,strengthen the effective integration of resources after mergers and acquisitions,effectively control the financial risks after mergers and acquisitions,and constantly carry out their own technological innovation and strategic layout.