The Analysis On The Synergistic Effect Of Haier's Transnational M&A Of GE Appliances

With the rapid development of the economy and the continuous expansion of the market scale,many companies will regard M&A(merger and acquisition)as an important way to achieve their own development and industrial upgrading.And the ultimate success of a company's cross-border M&A depends on the motives of the company and the integration effect after the merger and acquisition.Through analyzing cross-border M&A of enterprises,it also becomes one of the most important research topics at present how the motives and characteristics of M&A is pointed out and how to successfully conduct cross-border M&A as well as achieve synergy effects in order to achieve the goal of M&A.This dissertation takes the M&A activities of Haier and GE's home appliance as research cases,and conducts an in-depth analysis of Haier's acquisition of GE appliances and the realization of synergy.First of all,the research status and related theories about M&A motives,synergy effects and performance are summed up at home and abroad to provide a theoretical basis for the following case analysis.Secondly,the case section has elaborated Haier's motivation in cross-border M&A of GE appliances as well as the characteristics of its M&A,and then focused on analyzing whether the merger has achieved a synergy effect.The analysis starts from the realization of the synergy effect in these three dimensions: operation,management,and financial synergies.Based on the case data,the core financial indicators of profitability,debt repayment and operational capacity were selected to summarize the 11 disclosures from the first quarter of 2015 to the third quarter of 2017.And the financial indicators analysis as well as the regression analysis was further employed to analyze the relationship among M&A performance,stock price and synergy.It was also investigated whether Haier's acquisition of GE appliances had achieved synergies during the period of this study.Additionally,it concluded that Haier's acquisition of GE appliances had to some extent achieved its synergies in terms of its operations,management and finance.All of these were embodied in the improvement of M&A performance and the rise in share prices.Therefore,this merger is successful in the short term.Finally,this paper sums up the experience and implications of cross-border M&A of Chinese enterprises by combining the process,motivation and characteristics of this merger in order to provide reference for Chinese companies' further cross-border M&A.