Case Analysis Of New Energy Of GREE Eiectric Appiiance Merger In Siiver Long

Since the financial crisis in 2008,the number of M & A transactions in China's capital market has soared,and the M & A activity in the future is expected to be more active.However,in the three years from 2015 to 2017,786 failed M & A transactions have been disclosed,and the failure of M & A will have a negative impact on both the short-term and long-term development of the enterprise.Therefore,it is necessary to study the factors that affect the success or failure of the merger and acquisition,so as to find the strategy to avoid the failure of the M & a transaction.Through the analysis of the case of the merger and acquisition of GREE new energy,this paper will analyze the merger and acquisition transaction into two parts of the strategic decision and the scheme design by combining the qualitative analysis and quantitative analysis,so as to explore the factors that lead to the failure of the M & a transaction.In the case analysis part,through the analysis of the policy level,the technical level and the market level of the new energy automobile industry,this paper combines the advantages of the new energy in technology,industry chain and synergy,and demonstrates whether it meets the future business layout strategy requirements of GREE electric appliance,and thinks that GREE electric appliance is the same.The transaction of purchasing silver and Longxin energy is reasonable at the strategic level.In the design of M & A,this paper first evaluates the transaction price based on the theory of market method valuation,and draws a conclusion that the valuation of13 billion yuan for the new energy of silon is reasonable.In the next issue of shares purchase and directional increase to raise the supporting funds,based on the share price analysis of the same industry,the price of stock issuance in the transaction is obviously low,which means that the shareholders of GREE electrical appliances have paid a price of far higher than 13 billion yuan in the process of buying the new energy of silsilon.In the process of the investment,the share of the small and medium shareholders who did not participate in the fixed increase continued to decline,but the controlling shareholders made up for the loss of the stock purchase assets through the low cost of GREE electrical appliances and further centralized control.In the end,the dividends of small and medium shareholders are directly damaged,and in essence,it reflects the interests of large shareholders in the unfair trading operations.Due to the unreasonable design of M & a plan,small and medium-sized shareholders chose tooppose this transaction.If from the overall level of M & A,the M & A has a dual purpose in essence: the strategic layout of the new energy automobile industry,the second is to realize the optimization of the ownership structure and consolidate the holding status of the large shareholders.This strategy bundles the future strategic layout of GREE electric appliance with the strategy of optimizing the interests of the large shareholders,and fails to fully consider the interests and feelings of the small and medium shareholders,and eventually leads to the failure of the M & a transaction.This paper sums up the experience of the failure of the new energy transaction for the merger and acquisition of GREE electrical appliances.This paper holds that the two parties need to play a game of controlling business layout and interests at the same time of strategic decision.In the design of the merger and acquisition scheme,first of all,we should determine the priority of the merger and acquisition,taking the business layout as a priority,paying special attention to the integration of the business level,paying attention to the quality and efficiency in the pricing and trading methods,and seeking the success rate of M & A in a stable way as far as possible;taking the equity adjustment as the priority list.We should pay close attention to the impact of M& A programmes on the interests of all parties,flexibly apply the capital market system,and take account of the stability of stock ownership and the success rate of M& A.