Analysis Of The Motivation And Performance Of Midea Group's Cross-border M&A Of KUKA

In the process of modern economic development,as an important business management activity,mergers and acquisitions(M&A)are constantly emerging and running through the whole process.With the continuous expansion of industrial economy,the number and scale of M&As are also increasing.Take the developed countries such as Europe and the United States,whose national economic level is leading in the world as an example,five large-scale M&A waves have been set off in their economies.In recent years,transnational mergers and acquisitions of Chinese enterprises are also in the ascendant all over the world.Many private enterprises are constantly seeking opportunities for transnational mergers and acquisitions in order to quickly access foreign advanced technological resources and open up new channels for profit growth.As one of the leading enterprises in China's household appliances industry,Midea has gradually become its transformation goal under the background that the household appliances industry has entered a bottleneck period,in order to complete the layout of the whole industrial chain through vertical strategic mergers and acquisitions.The merged party of this case study,KUKA,is one of the four largest robotics companies in the world.It has great brand influence in the global market.In view of the scale of this cross-border M&A and the industry status of both sides,this paper chooses this case to study,which can provide reference for the future cross-border M&A of Chinese enterprises.This paper combines the actual social cases with the relevant theories of cross-border M&A in China and abroad,and obtains the motivation and performance of cross-border M&A of Midea and KUKA.On the basis of the relevant literature in China and abroad,this paper summarizes the main points of case study,and establishes the framework on the basis of these research points.This paper elaborates the relevant background,theoretical introduction,case description and analysis and the final research conclusion of the article through five chapters.The first chapter is the introduction.First,it explains the reasons for the case of the cross-border M&A of German Kuka by the group choosing America,and introduces the background of the M&A event.After that,the paper collates and summarizes the relevant literature on cross-border M&A which has been studied in the process of writing this article,and combs out the analysis ideas of this article on the basis of it.At the end of this chapter,it also introduces the research framework of this paper.The second chapter introduces the definition and mode of transnational mergers and acquisitions,the motivation of transnational mergers and acquisitions,the evaluation methods of transnationalmergers and acquisitions performance and the theory of this case.The third chapter is mainly about the introduction of the case.First,the basic situation of both sides of the merger and acquisition.Secondly,it describes the design and implementation of the merger and acquisition plan.Finally,it introduces the integration measures of Midea after the successful merger and acquisition of KUKA.Chapter IV firstly analyses the motivation of the cross-border M&A of KUKA by Midea,and finds that the M&A of Midea is not only to open the door of robotics industry,but also to promote the development of its own logistics business and realize the dual-wisdom strategy of enterprises by M&A of KUKA.Then,from the long-term and short-term market reaction analysis of the market investors' attitude to the M&A,and finally from the four main capabilities of the enterprise,select the appropriate evaluation index to evaluate the financial performance of Midea before and after M&A.Chapter 5summarizes the M&A activities of Midea based on the previous chapters,and then concludes that the M&A activities of Midea will guide the future cross-border M&A activities of Chinese enterprises.Through the analysis of this case,this paper draws the following conclusions: Midea will achieve synergistic effect in many aspects by choosing cross-border M&A of KUKA.Midea reasonably copes with the risks arising in the process of cross-border M&A of KUKA.The rich experience of M&A integration of Midea helps KUKA to operate well after being merged.This M&A has brought us a lot of inspiration.For example,successful overseas M&A requires a clear strategic layout ahead of time,and the related risks should be accurately identified and dealt with in the process of cross-border M&A.The integration after strategic M&A is the key to the success of M&A.By using the methods of literature research,case analysis and qualitative and quantitative analysis,this paper makes an analysis of the whole M&A case,focusing on the motivation and economic consequences of the cross-border M&A of KUKA by Midea.After analyzing the motivation of Midea's cross-border M&A of KUKA,this paper uses event analysis method to analyze short-term market reaction.At the same time,it uses ratio analysis method and trend analysis method to quantify relevant financial indicators to analyze the long-term market reaction and company's financial performance after the cross-border M&A.