Research On Overseas M&A Performance Of Household Appliance Enterprises

With the development of world economic integration,the flow of transnational capital has become increasingly active and transnational investment has quickly become one of the main forms of international capital flows in recent years.At the same time,under the background of China’s "Going Global" and "One Belt and One Road" strategy,domestic appliance companies’ overseas mergers and acquisitions are in full swing.As a representative enterprise with a well-known and highly competitive domestic appliance industry,Haier has always insisted on the globalization of enterprises and the strategy of brand globalization.In recent years,Haier has accelerated the pace of overseas investment and mergers and acquisitions.It has successively completed the establishment of a global production base and the acquisition of home appliance brand businesses in Japan and Singapore.On January 15,2016,Haier formally announced that it would pay 5.4 billion U.S.dollars in cash to acquire GE’s appliance business.On June 7,2016,Haier officially completed the acquisition and settlement of the GE appliance business.Regardless of the transaction amount or the scale of mergers and acquisitions,Haier’s acquisition of GE appliances is the most influential overseas M&A activity implemented by domestic home appliance companies in recent years.It can be regarded as the most representative and landmark event in the history of Chinese home appliance companies’ overseas M&A development..In order to effectively explore the significance of overseas M&A behaviors to the performance of China’s home appliance companies and guide domestic enterprises to better participate in the development of international investment and overseas markets,this article selected the typical case of Haier’s acquisition of GE household appliances for analysis and research.This article uses Haier to acquire GE appliances as the case study object.First,the literature research method was used to sort out and summarize the relevant theoretical basis and previous research literature,so as to comprehensively grasp the status quo of overseas M&A performance research and research results.Secondly,the paper uses the case study method to introduce the background of mergers and acquisitions,merger and acquisition incentives,merger and acquisition process,mergers and acquisitions plan and characteristics of Haier GE in detail.As many aspects of M&A performance evaluation are based on merger and acquisition motives,this article focuses on analyzing the motivation of Haier’s acquisition of GE appliances.Then,this article uses the accounting index research method and the comparative analysis method.With the analysis of various financial performance indicators and non-financial performance indicators,the change in the performance level of Haier before and after the acquisition of GE appliances(that is,a vertical comparative analysis)is studied.The impact of performance levels.On the other hand,the performance of Haier M&A was compared with the performance of the representative companies in the same industry without overseas M&A,and from another point of view,the effect of overseas M&A on corporate performance was measured.Finally,this article summarizes the conclusions of the case study and gives advice and inspiration to other Chinese companies that anticipate overseas M&A plans.Through the research on the Haier’s acquisition of GE home appliances performance,the following conclusions are drawn:(1)In terms of financial performance:The acquisition of GE appliances has reduced the company’s solvency in the short term,and has little impact on the company’s long-term debt repayment ability;The profitability has remained healthy and stable;the acquisition of GE appliances has weakened Haier’s operational capabilities and challenged the integration of enterprise resources and management capabilities;the acquisition of GE appliances has strengthened Haier’s corporate growth capabilities and has earned Haier a broader market development space.(2)Non-financial performance:The acquisition of GE appliances has increased the overseas market share,but has limited impact on the domestic market;the acquisition of GE appliances has improved the Haier brand effect and synergy;the acquisition of GE appliances has improved Haier’s R&D capabilities and innovation capabilities;GE Appliances promoted Haier,s globalization process and the implementation of its global brand strategy.