Study On MIDEA’s M&A Motivation And M&A Performance Evaluation

In recent years,as the rapid development of domestic M & A market,the amount and the number of mergers and acquisitions are climbing.In 2016,the amount of transaction volume and transaction volume in China’s M & A market reached a new high,with the total amount of M & A transactions reaching 770 billion $;the total number of transactions reached 11409.Among them,the Chinese mainland enterprises overseas investment amount to 221 billion $.The development of M & A practice has promoted the research of M & A theory,including the theory of M & A and the theory of M & A value creation.The research on the theory of mergers and acquisitions is relatively mature.The research on the performance of M & A has not yet been conclusive,and contrary to the rising of M & A transactions,many scholars have shown that the empirical results of M & The vast majority of mergers and acquisitions are considered to be failing.China has proposed the "Made in China 2025",that means Chinese manufacturing change from big to strong.Household appliance industry as an important part of China’s manufacturing industry,industrial restructuring is imperative.At present,the integration and remodeling of household appliance industry has become the internal norm,in order to seek new profit growth point,have entered the diversified development of mergers and acquisitions.MIDEA is the leading group of household electrical appliance industry and a diversified development of the typical business.From the development history of MIDEA,the development of MIDEA is inseparable from the M & A.Study on the M & A experience MIDEA Group has some reference significance to other household electrical appliance enterprises,and also have some reference value for the integration of other manufacturing industries.Therefore,this paper chooses MIDEA as a research case in recent ten years.Based on the theory of industrial evolution proposed by Kearney Management Consulting Company in 2002,this paper analyzes MIDEA’s the motivations of mergers and acquisitions at different stages.Through the summary and analysis of the research methods and evaluation indexes of the performance of M & A in the past,put forward the performance evaluation indexes of the motives and the performance evaluation system of M & A.This paper draws the following conclusions:(1)From 2004 to 2016,MIDEA experienced the scale stage and aggregation stage of industrial evolution.(2)The theory of industrial evolution can help explain the MIDEA’s M & A motives and M & A activity.(3)Mergers and acquisitions have played a great role in promoting MIDEA as the leader of household appliance industry.