Research On Motivation And Performance Of Haier Group’s Cross-border M&A

In recent years,many home appliance companies in China have launched cross-border mergers and acquisitions activities to expand the international market.However,compared with developed countries,domestic appliance companies are not well-known,and there is still a big gap.Haier Group,as a leader in China’s home appliance brand,has successively acquired Sanyo White Appliance Business,Fisher & Paykel,General Electric Appliances Division and Italy’s Candy Company.An overseas acquisition case,studying Haier’s cross-border mergers and acquisitions has far-reaching significance for Haier’s own development and even the entire industry.This paper studies the motives of Haier’s cross-border M & A through literature analysis,uses Haier’s financial indicators before and after the merger to study the performance of Haier’s M & A,and analyzes Haier’s development potential and brand influence with non-financial indicators.Through synergies,the two sides complement each other’s advantages,expand overseas markets to realize Haier’s global brand strategy,and use both platforms to integrate resources in order to enhance Haier’s influence.In terms of performance,it was found that the synergistic effect of mergers and acquisitions gradually emerged;the stock price potential is large,and the market holds a positive attitude towards Haier’s cross-border mergers and acquisitions.The short-term solvency and operating capacity declined when acquiring GM appliances.Overall,Haier’s multiple cross-border mergers and acquisitions have increased Haier’s overseas revenue share through horizontal comparisons,and its overseas market position is becoming increasingly stable.Vertical comparison found that Haier’s overall financial situation is good and its brand influence has been significantly improved.Motivation.Finally,it provides some enlightenment for my country’s home appliance companies to go out: clarify the motivation of cross-border mergers and acquisitions,pay attention to prevent merger and acquisition risks,and most importantly strengthen the integration of resources.This article briefly explains the research background and significance of the article,and through the analysis of domestic and foreign scholars on the motivation of mergers and acquisitions and the case of Haier’s cross-border mergers and acquisitions,the relevant literature is combed.Then it expounds the relevant theories of cross-border M & A.Then study the characteristics of Haier Group’s overall cross-border M & A,including the way of M & A,the M & A region and the choice of M & A target.And from the synergies,market forces and resource dependence to explain the motives of Haier Group across M & A.Then analyze the performance analysis of Haier Group’s mergers and acquisitions from theshort-term and long-term aspects.After that,we started with the case of Haier Group’s acquisition of general household appliances,and explored the entire process of Haier’s acquisition of general household appliances.Mainly include the specific process of M & A,motivation analysis and performance analysis.Among them,the event research method,financial indicator method and non-financial indicator method are used to analyze M & A performance.Finally,the summary summarizes the valuable opinions for Chinese enterprises’ cross-border mergers and acquisitions.