Research On Motivation And Performance Of Household Appliance Companies' Cross-border M&A

After decades of development,Chinese home appliances enterprises has experienced a period of rapid development,the concrete embodiment in improving productivity,enhance sales ability,the driving factors including population resources in our country brings huge market scale,the national policy to encourage home appliance enterprise self innovation and development,emerging industry development initial stage the rapid progress of common advantage.However,when compared with developed countries,the paper found that although Chinese enterprise brand in the technology management and the accumulation,the company has yet to enter the ranks of the world's leading.In 2019,domestic enterprises are faced with many challenges and risks,such as market saturation,fierce competition and trade war between China and the U.S..In addition,while the household appliance market is faced with rising raw material costs,there is no significant increase in corporate gross profit,and the overall white electricity industry is in the trough period of performance growth.The long-term development of enterprises can be through internal growth or external expansion,so it is necessary for Chinese enterprises to carry out strategic layout of overseas market.On the other hand,in recent years,some large enterprises in developed countries have carried out transformation and upgrading,and the home appliance business has withdrawn from the core business of enterprises.However,the advanced technology,good reputation and market of these enterprises are exactly what China's home appliance enterprises lack at present.In this context,domestic and foreign enterprises complement each other's needs and strategies.In order to achieve a win-win situation for the two countries' enterprises,the negotiation time and procedure before the merger and acquisition are greatly shortened,indicating that China's household appliance enterprises have ushered in an optimal time for cross-border merger and acquisition.Based on the above background,this paper expounds the coordination theory,signaling theory,theory of market power and refocusing strategy theory,with the examples of Midea acquisitions Toshiba home appliance in combination with the current electrical appliances iridustry overall situation,through the event study method,the accounting index method,the methods of literature research,analyzes the reason of mergers and acquisitions and effect,study the case whether the desired goals,as well as the market value of the enterprise after M&A.In the end,it summarizes the unrealized or insignificant goals in the case,that is,whether Midea obtains the innovative ability of Toshiba household appliances products and whether it achieves the global operation of the enterprise,and puts forward the solutions for reference to these problems.This paper's innovation point is that according to the actual situation of M&A motivation,use a double performance indicators and the merger of other effects,the method of combining effect implementation situation of all aspects of the research enterprise merger and acquisition,analyzes the driving factors M&A and M&A effect of inner link,unlike previous literature on the research of the M&A performance,only can more accurate research conclusions,in order to put forward for the future development of the Chinese electrical appliances enterprise enlightenment.