An Analysis Of The Motivation And Performance Of Chinese Enterprise Cross-border M&A

With the development of China's economy,people's consumption level is constantly improving,all kinds of household appliances are becoming more and more popular in China,demand is growing,and competition between home appliance companies is increasing to attract more consumers.In addition,the rapid changes in the financial market in 2015 affected the global white goods market and the market situation is declining,many companies choose to gain market share to remain competitive.In this case,many companies are choosing mergers and acquisitions for their own development.China's home appliance companies appear to have entered a wave of mergers and acquisitions before and after 2015,most of them cross-border,including Haier.Haier's acquisition of GE Group's home appliance business is by far the largest overseas merger and acquisition activity in China's home appliance industry.Based on market power theory,resource-based theory and synergy theory,this paper analyzes the common causes of cross-border M & A in China.Secondly,it uses the method of case study to reveal the real causes of Haier M & A GE home appliances.Thirdly,it selects some main financial data and market data indicators,using the financial index method,EVA value method to quantify the performance before and after cross-border M & A,and the synergy effect before and after cross-border M & A,core competitiveness and other aspects of a detailed comparative analysis;finally,the conclusion and inspiration of this paper.Based on the case study of this paper,it is found that Haier's acquisition of GE home appliances aims to obtain resources such as core technology,brand effect and product marketing,further expand the international market,consolidate the international market position,and give play to the synergistic effect of cross-border M & A to finally realize the global strategic layout.From the results of comparative analysis of some financial indicators,although the cross-border M & A activities did not significantly improve Haier's financial performance,that is,did not help Haier to resist the risks of the industry decline and achieve its growth goals,and did not improve Haier's asset management ability level,but the EVA value of the company after the M & A activities showed a significant growth trend,resulting in synergy,High Haier's overall market share and technology R & D level,and the main business situation significantly improved.In a word,Haier's successful M & A provides a useful reference for the globalization of Chinese household appliance enterprises.Based on the conclusion of the above case analysis,this paper suggests that cross-border M & A should make clear the real demand and real motivation of the enterprise,and can not acquired for M & A.Cross-border M & A should take the international famous brand as the goal,make full use of the brand effect to expand the international market.We should further strengthen the integration of enterprise brand,market,culture,products and other resources after M & A,and maximize the synergy effect.Attach great importance to the debt service risk after M & A,and strengthen the control of funds.