Research On Value Realization Of Cross-Border M&A

Cross-border M&A as a way of external expansion of the enterprise,its successful development can promote enterprises’ resource configurations,the learning of advanced technology and shares of international markets.Eventually,it can realize the promotion enterprise’s comprehensive strength.Therefore,the majority of enterprises tend to use this way.Since the era of "post-financial crisis",although enterprise of our country are in the initial exploratory stage of cross-border M&A,they still made a substantial progress in 2016.But at the same time,due to the frequent occurrence of irrational foreign investment behaviors of enterprises,our government has become increasingly strict in the supervision of cross-border mergers and acquisitions.Therefore,we need to think more urgently about the effectiveness of cross-border M&A in our enterprises:How can cross-border mergers and acquisitions realize value.Based on the merger and acquisition of Midea Group and KUKA AG,this dissertation uses case study as research method to analyze the path of value realization in this cross-border M&A and conclude the relevant successful experience for Chinese enterprises to carry out effective cross-border M&A activities.For this purpose,this dissertation collects the related literatures at home and abroad.On this basis,this dissertation review relevant researches on whether M&A can realize value and which factors in M&A can influence value realization.It can help determine this dissertation’s theoretical basis.Next,through studying the M&A of Midea Group and KUKA AG,this dissertation find out the path of M&A’s value realization from the degree of M&A motivation,processes of M&A and synergies of M&A.Then,this dissertation builds accounting index analysis system according to Midea group’s annual and quarterly financial report data.At the same time,this dissertation uses the tools such as principal component analysis(PCA)combined with Excel charts to describe the changes of performance before and after the implementation of Midea group’s M&A.Finally,this dissertation makes conclusions about the realization of M&A’s value,puts forward relevant suggestions for M&A and explains the innovation points and shortcomings of this dissertationIn this dissertation,case study has shown the path of value realization in the M&A of Midea Group and KUKA AG.According to the M&A motivations,Midea Group makes careful diligence for motivation fit and strategic value analysis to complete the estimation of this M&A’s value;In the process of merger and acquisition,appropriate ways of M&A are adopted and this transaction is completed successfully with reasonable transaction price and proper payment method,which is the key to the realization of M&A’s value.Then,Midea Group makes effective and proper integrations on human resources and patent technology of KUKAAG.This can lay the foundation of the realization of M&A’s value.Eventually,Midea group’s enterprise value makes a good progress in a relatively short period.This change is derived from the four positive synergistic effects of management,finance,management and intangible assets.