| With the rapid growth of social economy,companies are finding themselves in a very competitive market.They often pursue mergers and acquisitions in order to drive business growth within a short period or promoting a competitive advantage against competitors.As a result,M&A have been playing a key role in modern corporate management,and they continue to shape local and international business on a more frequent basis and on a larger scale.The companies in developed countries,such as Europe and U.S.,adopted mergers and acquisitions earlier than China.They have experienced 5-time large scale mergers and acquisitions in their economic system.After mergers and acquisitions were adopted in China,China’s listed companies also undertook various mergers and acquisitions to increase the values of shareholders.The frequency,quantity and scale of mergers and acquisitions continue to grow.Some listed companies even entered serial mergers and acquisitions which effectively prompted the development of China’s capital market and became the object in the academic research area.Midea Group is a typical case of serial cross-border mergers and acquisitions.The previous research is often based on the performance analysis of Midea Group’s single merger and acquisition activity,lacking a more systematic analysis of serial merger and acquisition activities.This paper analyzes the long-term and short-term performance of Midea Group’s serial cross-border M&A.This paper uses Midea Group’s serial cross-border M&A case as an example,and analyzes the motivation of Midea Group’s M&A based on market power and synergy effects.In terms of M&A performance research,first of all,the event research method is used to evaluate its short-term market performance,then the financial index analysis method and factor analysis method are used to evaluate its long-term financial performance,and finally the non-financial indicators such as market share and innovation ability are analyzed.Research results are used to verify the effectiveness of Midea Group’s serial merger and acquisition strategy.As a result of this paper and analysis,it is found that the main motivation for Midea Group to implement serial mergers and acquisitions is to improve its industry chain,obtainnew technology and other resources,expand market share and promote its brand in international markets.In terms of M&A performance,Midea Group’s short-term market performance is good.However,the evaluation of its long-term financial performance is not very optimistic based on factor analysis.According to the results of non-financial performance analysis,continuous cross-border mergers and acquisitions have indeed helped Midea Group achieve some of its motivations,such as expanding market share,enhancing corporate innovation capability and improving industry status. |
