Research On Continuous Mergers And Acquisitions' Performance Of Midea Group

The manufacturing industry is booming,many companies choose to use an extended development approach in order to seek a strategie deployment of the future.In recent years,Midea Group has frequently expanded its business landscape through mergers and acquisitions.However,is this series of mergers and acquisitions an increase in corporate performance?Has the company effectively integrated resources after the merger?All things are issues that should be concerned.The paper took Midea Group Co.,Ltd.as the research object and analyzed the performance of Midea Group,s M&A events in 2014-2017 through literature research nd event research methods,then provided some suggestions based on this.The main research contents of the paper are as follows:Firstly,the concepts and theories related to M&A were introduced,including the definition of M&A and continuous merger,the theoretical basis of M&A,the concept of M&A integration and the evaluation method of M&A performance.Secondly,the background of the selected cases was introduced.In addition,the current situation and development trend of the home appliance industry and the specific M&A processes were introduced.Thirdly,this paper selected 12 financial indicators to analyze the long-term M&A performance of Midea Group,and then evaluated the continuous M&A integration of Midea Group based on the value chain and compares them with Gree Electric Appliances,including:procurement,R&D,Production,sales,etc.The economic value added of Midea Group from 2014 to 2017 was calculated separately;the AR,CAR and other indicators were calculated through the event research method and used to analyze the short-term performance of Midea Group's continuous M&A events.Finally,Midea Group had the good long-term and short-term performance after mergers and acquisition.Although,most of the long-term indicators have risen in a certain extent,there were still some problems to be solved,such as the profitability,the efficiency of production staffs and the rise of raw material prices.Midea Group also should focus on the M&A integration efforts to enhance the core competitiveness.Through the research on Midea Group's continuous mergers and acquisitions,the paper can provide some suggestions to Midea Group and some guidances for enterprises that plan to perform M&A events frequently in the future.It also can enrich China's research about continuous mergers and acquisitions.