Research On M&A Performance Evaluation Based On EVA

Under the influence of global m&a activities,the m&a activities of large enterprises in China are also gradually carried out.From the international successful cases,the use of mergers and acquisitions to develop enterprises,enterprises can achieve economic benefits in a short time.In the international scope,EVA is widely applied,but it has been in China for a short time.Moreover,due to the imperfect domestic market and economic system,EVA is not widely applied.This study,based on the EVA concept,evaluates the m&a performance of enterprises,which is of great significance for promoting the application of EVA in domestic enterprises.For nearly a hundred years,merger and acquisition activities have been carried out enthusiastically.It is one of the effective ways for large enterprises to expand their business scale,and it is very popular among entrepreneurs.In this research,first,make analysis to the research background,purpose,significance,secondly to about m&a impact on performance at home and abroad,and merger and acquisition performance evaluation methods to review and summarize previous research data,analysis of the existing enterprise mergers and acquisitions of ideas and methods of evaluation of m&a performance,explain its train of thought,compare the advantages and disadvantages,finally it concludes that our country enterprise mergers and acquisitions in the way of using EVA is effective and practical.The concepts,types,motivations,relevant theories and performance evaluation methods of m&a are introduced in this study,which provides a theoretical basis for this study.Based on the case study of mergers and acquisitions of beauty little swan,introduces the background of m&a,the overall situation,the merger process between the two groups and merger and acquisition,merger and acquisition performance based on EVA evaluate beauty at the same time,the analysis of the impact of m&a performance of beauty,finally came to the conclusion that the implementation of the merger and acquisition of midea group has certain negative effects,including:cash payments for enterprises face a bigger burden,leading to cash flow is not smooth;The risk of premium exists in the enterprise,and the interests of shareholders are easily damaged.After the merger and acquisition of unexpected events,subsequent integration needs to be improved.Finally,in view of this case study,countermeasures are proposed to improve the effectiveness of m&a,including:choosing the appropriate payment method,controlling the m&a premium,and strengthening the follow-up integration.The purpose of this paper is to provide reference value for future mergers and acquisitions in China’s home appliance industry.