The Analysis And Enlightenment Of Haier's Financial Performance In Cross-Border M&A Of GE Home Appliances

Our country's native home appliance brand has got the position in the international home appliance market through developing for about forty years since from economic reform and open up,its annual production is ranked first in the world.Our country's related policies provide a good environment for cross-border M&A under the continuous development background of our home appliance enterprises,more and more enterprises choose the way of cross-border M&A to consolidate their positions by taking this opportunity to improve their profitability and strengthen their researching level of technology,the amount of cross-border M&A of home appliance enterprises is becoming more and more,so is the M&A amount.As the hottest case of home appliance M&A in 2016,Haier's merger and acquisition of GE Appliance has aroused the attention of experts from all walks of life and the analysis of this case has a very strong practical significance.Firstly,this article combs the related performance theories of cross-border M&A to provide the theoretical basis for analyzing this case,then makes a pad for Haier's M&A of GE Appliance background by analyzing the developing situation of our country's home appliance industry.Secondly,summarize the four causes of Haier to merger and acquisition GE Appliance based on the analysis of Haier's and GE Appliance's position in the market that are to play the synergistic effects of Haier and GE Appliance,to consolidate the Haier's position in the Chinese home appliance market,to strengthen its own scientific research capabilities and technology sharing abilities with GE Appliance,the most important is to improve Haier's own profitability.Finally,evaluate the performances of Haier before and after merger and acquisition GE Appliance through the methods of Synergistic effect analysis,calculation of EVA index and business performance analysis to know that Haier has realized the aim of merger and acquisitioning GE Appliance and improved its own profitability,the calculation of EVA index shows that this M&A has brought huge wealth to shareholders of Haier and its overseas market shares and the scientific research technology,the optimization of raw material purchasing cost has also been improved.Haier's rich experiences of M&A and the mild integration strategies lay the foundation for Haier's successful M&A of GE Appliance.This paper provides the reference on the experiences and the support on the theories to our country's home Appliance industry to carry on the globalization strategy,internationalization strategy and cross-border M&A through the successful case of Haier's M&A of GE Appliance.