Research On Cross-border M&A Performance Under Internationalization Strategy

With the support of the policy of reform and opening,the household appliance industry of our country has developed rapidly for more than 40 years,and has formed the situation that some large household appliance enterprises dominate the market at present,but because the domestic household appliance market tends to saturate,the competition of the household appliance industry is becoming more and more fierce,so our national household appliance enterprises need to open up overseas markets to relieve the pressure of domestic competition.Under the background of economic globalization,internationalization strategy is an important strategy for enterprises to develop abroad.By implementing internationalization strategy,enterprises can quickly open up overseas markets and enhance brand awareness in the global.There are three main modes of internationalization strategy: namely factories overseas,direct export,and cross-border M&A,among which,cross-border M&A is the main way for our household appliance enterprises to implement internationalization strategy.cross-border M&A not only can effectively reduce the risk of enterprise expansion,but also can be directly obtained advanced technology of research and development,learning enterprise management experience of success,Also can use the original enterprise’s sales channels to quickly open the local market,so as to gain a competitive advantage in foreign countries.The case of Qingdao Haier M&A GEA is a successful case of cross-border M&A in the household appliance industry.Therefore,it is worth to study the motivation of M&A,the performance of M&A and the effect of internationalization strategy.This paper takes the case of Qingdao Haier M&A GEA as the research object,Firstly,it introduces the connotation of internationalization strategy and cross-border M&A.Secondly,it briefly analyzes the cross-border M&A of China’s household appliance industry.Thirdly,the reasons,process and results of Qingdao Haier M&A GEA.Finally,the paper analyzes the performance of the Qingdao Haier M&A GEA from three aspects.First,the short-term performance of Qingdao haier’s capital market.Second,the comprehensive evaluation scoring method is used to analyze the long-term performance of mergers and acquisitions from six aspects,namely,shareholders,creditors,employees,customers,suppliers and the government.Third,theimplementation effect of its internationalization strategy is analyzed.Finally concluded that the short-term performance had go up,made the enterprise to increase the value,in the long run,made the enterprise of the acquisition are obtained by the main stakeholders interests,from the effect of the implementation of the internationalization strategy,cross-border M&A makes Qingdao haier improve the market share in North America,enhance the technical research and development ability,broaden the overseas marketing channels,and enhance the brand value.Therefore,this merger and acquisition is a successful cross-border M&A in the household appliance industry.