Study On Financial Synergy Effect Of Enterprise Merger And Acquisition Based On EVA

In June 2016,Haier successfully acquired the household appliances part of general electric for $5.58 billion,which is the largest overseas acquisition in China until 2016.This acquisition not only has a great influence on the promotion of its global competitiveness,but also plays a demonstration role for other enterprises.It is not only helpful to improve the theory of financial synergies,but also to guide the practice of enterprise merger and acquisition by discussing the financial synergies after Haier ’ s acquisition of general household appliance business from a new perspective.Among many indicators of financial synergy analysis,EVA is most closely related to corporate strategy and corporate value;it is different from accounting profit and it reflects the intrinsic nature of economic profit and surplus value,which can effectively measure the ability of enterprises to create value by capital.In conclusion,this paper takes Haier ’s acquisition as a case study;based on the perspective of EVA,analyze the financial synergy effect of mergers and acquisitions,the influencing factors,changing trend and internal mechanism of the financial synergy effect of mergers and acquisitions,and proposing forward targeted strategies to improve the financial synergy effect of mergers and acquisitions,so as to provide recommendations for the successful financial synergy management of mergers and acquisitions.The main contents of this paper include: Theoretical analysis of financial synergies in mergers and acquisitions based on EVA;Financial synergy analysis of Haier’s acquisition of general household appliance business based on EVA;Promotion strategy of financial synergies of haier’s acquisition of general household appliance business based on EVA.First,starting from the definition of merger and acquisition and the concept of merger and acquisition synergy,combining with the research objectives,this paper analyzes the mergerand acquisition theory,synergy theory and EVA theory,clarifies the mechanism of merger and acquisition financial synergy,and constructs the theoretical analysis framework of the research.Then,on the basis of Haier’s acquisition of general household appliance business,this paper analyzes the factors of financial synergies of Haier’s acquisition,as well as the changes of financial synergies before and after the acquisition,and proposes the strategy to improve financial synergies on the basis of problem analysis.The research shows that effective financial synergetic effect management is the basic to realize the financial synergetic effect,which plays an important role in promoting the improvement of Haier ’ s competitiveness.After the successful merger and acquisition,Haier needs to strengthen the creative ability of EVA and strengthen the control of financial risks.Inovation points: This paper taking Haier’s successful acquisition of general electric household appliance business as a case study,combining EVA with financial synergies,and discussing the changes of financial synergies before and after the successful acquisition from a new perspective;This paper puts forward the strategy of improving the financial synergetic effect with the successful case of merger and acquisition of Haier,which can be a guidance of the same type of merger and acquisition.