A Case Study On The Financial Performance Of HE Company's Merger With TY Company

Home appliance manufacturing industry into the era of intelligence development,enterprise facing the double pressure from domestic and abroad,traditional home appliances manufacturing enterprises want to not be eliminated in the fierce market competition,to expand the scale of the industry integration strategy,form the cost advantages,expand enterprise brand,and in the manufacturing process,sales channels,and other fields to achieve competitive advantage.In this context,mergers and acquisitions of household appliance manufacturing enterprises occur frequently,but whether mergers and acquisitions can bring positive growth to enterprise performance is still a hot topic of discussion.In 2016,the home appliance industry was at a critical stage of intelligent transformation and overseas market development.By acquiring the home appliance business of TY company,HE company became a typical case of overseas acquisition of home appliance manufacturing industry,with analytical value.This paper adopts the traditional financial index method combined with the comprehensive evaluation method of EVA to evaluate the performance of the merger,and draws the conclusion that the merger improves the performance level of HE company in the short term,but there are still deficiencies in the long-term development.The first part of this paper is the introduction.Firstly,it describes the background and significance of HE company's merger with TY company.Then,it sorts out the relevant literatures of domestic and foreign scholars' research on the financial performance of merger and acquisition.The second part is the background of the case.Firstly,it introduces the basic situation of both sides of the merger.Secondly,it explains the background of HE company's merger with TY company from the perspective of the industry.The third part is case analysis section,first elaborates the theoretical basis of merger and acquisition,and then based on the traditional financial index method from the profit ability,operation ability,debt paying ability and growth ability of m&a performance evaluation analysis,finally USES the EVA evaluation method,in a series of accounting subject adjustment and the capital asset pricing model,on the basis of comprehensive evaluation for the acquisition performance;The fourth part is the suggestion and enlightenment.According to the problems analyzed in the third part,relevant Suggestions are put forward from three aspects of enterprise assets operation,payment method selection and profit point development.In the end,this paper expounds theenlightenment from five aspects: performance analysis method,development strategy,m&a target,m&a integration and development opportunity.