A Study On The Impact Of Midea Group M&A On Value Chain Integration

After decades of development,China’s home appliance industry has matured and enjoys a certain reputation in the international market.In order to better comply with the economic development and achieve "Made in China 2025",the transformation and upgrading of Chinese enterprises is imminent.Therefore,many companies choose to use mergers and acquisitions to promote corporate transformation and enhance their competitive advantages.This article selects Midea Group as the research object and analyzes the impact of Midea Group’s four consecutive cross-border mergers and acquisitions on companies from the perspective of value chain integration in order to increase the value of the company’s attention to value chain integration and to integrate the value chain of other home appliance companies Provide a reference for decision-making.This article first introduces the development status of China’s home appliance industry,and briefly summarizes the current status of the Midea Group and its M & A history.Secondly,from the perspective of external value chain integration,Midea Group conducted a detailed analysis of the four mergers and acquisitions in recent years.It is believed that Midea Group has achieved value chain expansion,extension and complementation through mergers and acquisitions.Then this article analyzes the internal value chain integration strategy implemented in Midea Group M & A from four aspects: technology,channel,finance,and human resources.This article then compares the changes in operating income,R & D investment,and capital management before and after the merger,and evaluates the impact of the value chain integration strategy on specific projects.Finally,from the overall corporate level,it compares and analyzes the changes in economic value added,financial risk,and company market value before and after the integration of the M & A value chain,and objectively evaluates the impact of the M & A value chain integration on the overall business development of the company.The analysis shows that Midea Group has implemented and implemented a value chain integration strategy in four mergers and acquisitions in recent years,expanded its overseas market share,absorbed advanced patented technologies,successfully entered the robotics market,accelerated the growth of business revenue,and strengthened In order to improve the profitability of the company,the future development of the company is more optimistic for investors,and the company’s stock price and market value have increased to a certain extent.However,the company’s EVA growth rate has not improved,the EVA return rate has also declined,and the company’s financial risk has increased significantly,indicating that the continuous large-scale mergers and acquisitions of the company have brought huge investment costs to the company and increased the company.The pressure of capital flow has reduced the company’s total asset turnover rate and significantly reduced its operating capacity.However,although the enterprise’s value chain integration strategy cannot reduce the losses caused by mergers and acquisitions in a short period of time,it can stabilize the development trend,and as time develops,it can create more economic benefits for the enterprise.The case of Midea’s value chain integration and mergers and acquisitions provides a good reference for other companies in the home appliance industry.There are places for other companies to learn from and deficiencies that need to be avoided.This article gives the following suggestions:(1)Reasonable formulation M & A plan,choose diversified payment.(2)Strengthen internal value chain integration and optimize strategic cost management.(3)Focus on cultural integration and develop effective integration strategies.