Research On The Synergy Effect And Risk Of Haier's Mergers And Acquisitions Of American General Electric Appliances

The continuous and in-depth advancement of reform and opening up has continued to transform and upgrade China's economic development structure,and its economic development concepts and growth forms have undergone profound changes.With the successive implementation of the "Belt and Road" policy,more and more enterprises are turning their eyes to foreign development.At the same time,in order to effectively reduce the cost of enterprises,they quickly occupy the international market and obtain a series of competitive advantage resources.Enterprises are developing their own international in terms of the strategic approach,cross-border mergers and acquisitions have been chosen to achieve the development of the enterprise itself.Different enterprises implement cross-border mergers and acquisitions for different purposes,but they are basically aimed at obtaining synergies in operation,management,and finance.However,synergies are not realized in every cross-border merger and acquisition.Therefore,it is very important to study the motivations of mergers and acquisitions,whether they have synergies and the risks involved in the merger and acquisition process.Haier's acquisition of General Electric Appliances was completed on June 7,2016.As the largest merger in the history of home appliance mergers and acquisitions,this merger can enable Haier to use the sales channels of general household appliances to open the US market,realize Haier 's global strategic layout,and expand Haier 's Global brand awareness.As one of the motivations for corporate mergers and acquisitions,synergy is also an important factor to measure the success of mergers and acquisitions.Therefore,this article focuses on the analysis of synergy.At the same time,in the process of mergers and acquisitions,due to the existence of various risks,it may affect the synergy.The degree of performance,so in addition to the analysis of synergy effects,also analyzes the risks faced in mergers and acquisitions.This article takes Haier's acquisition of American General Electric Appliances as an example,and conducts a comprehensive analysis of Haier's merger and acquisition event through case study and financial index analysis.The main research contents of this article are as follows: First,the concepts and related theoretical foundations of synergy and risk are sorted out,and the necessary theoretical foundations are provided for the following content.Second,the case of this merger is described based on the Haier merger and acquisition event.First,analyze the background of mergers and acquisitions,and then give a brief introduction to the two parties.Second,analyze the motivations of the mergers and acquisitions of the two parties.First,analyze the motivations of mergers and acquisitions of Haier.A detailed analysis of the case of international mergers and acquisitions,the corresponding identification of the operational,management,and financial synergies generated by the mergers and acquisitions,and then a detailed analysis of the three synergies through the combination of financial indicators and non-financial indicators;then the merger and acquisition Risk analysis.Finally,based on the above analysis,analyze Haier's merger and acquisition of general household appliances,and draw the fundamental reasons for Haier's successful merger and acquisition,and draw a few conclusions to clarify the motivation of the merger and acquisition,make preparations before the merger,and choose a reasonable financing and payment method With emphasis on integration after mergers and acquisitions,it can provide a reference for companies in the home appliance industry that want to enhance their comprehensive strength through cross-border mergers and acquisitions.The case analysis draws the following conclusions:(1)From Haier 's profitability and growth capacity,it analyzes business synergy,and Haier has achieved good operating synergy;from Haier 's operating capacity and cost control capabilities,it analyzes the corporate management synergy from the cash flow index and debt solvency index analyze the financial synergy,and the index changes slightly,indicating that a certain management synergy and financial synergy have been obtained.(2)Although Haier has obtained certain synergies,the financing risks,pricing risks,payment risks,cultural integration risks,and asset integration risks faced by M & A have affected the further development of M & A synergies.