Research On Financial Synergies Of Otis Electric And Express Elevator

With the continuous development of global economy,enterprises tend to adopt the way of merger and acquisition in order to expand business scale,occupy the market and pursue the maximization of enterprise value.Mergers and acquisitions not only enable enterprises to obtain efficient capital activities,but also can expand the scale of enterprises and promote the progress of market economy.Compared with the expansion of enterprises through their own accumulation,mergers and acquisitions have a time advantage.Therefore,mergers and acquisitions can rapidly occupy the market scale and improve the competitiveness of enterprises on the basis of understanding the market demand.The financial benefits brought by merger and acquisition are called financial synergies.One of the main motivations of merger and acquisition is to achieve financial synergies,which is also an important indicator to judge whether an enterprise is successful in merger and acquisition.Financial synergies are mainly reflected in cost reduction,reasonable tax avoidance,improvement of financial capacity,increase of corporate cash flow,increase of investment plan,etc.At present,there are few contents and no perfect analysis system for the research of financial synergies in elevator industry in China,so the research in this paper can provide theoretical basis for the future research of financial synergies,and also has practical significance for the development of enterprises.This paper adopts literature research method and case analysis method to study whether Otis electric co.,ltd.has successfully achieved financialsynergies after acquiring Express elevator co.,ltd.In the literature research part,mainly reviewed the domestic and foreign scholars on mergers and acquisitions,integration and financial synergy of the theoretical research results;In the part of case analysis,Otis electric co.,ltd.and Express elevator co.,ltd.are selected to analyze and study the merger and acquisition behaviors of the two elevator companies,including the background of merger and acquisition,the process of merger and acquisition and the motivation of merger and acquisition.Through the reflection of financial data,Otis electric co.,ltd.,for Express elevator co.,ltd.,a series of financial integration after the merger measures significantly strengthen enterprise financial capability,enterprise debt paying ability,capital management and profitability improved before m&a,compared so that enterprises have to realize financial synergies,mergers and acquisitions have already produced results.The successful merger between Otis electric co.,ltd.And Express elevator co.,ltd.is a typical case of "strong cooperation" in the elevator industry,which not only improves the core competitiveness of Otis electric co.,ltd.but also provides a reference for financial collaborative practices in other industries.Finally,the conclusion indicates that enterprises should make reasonable m&a plans,determine acquisition targets and attach importance to financial integration in the process of m&a.Only by strictly carrying out this series of work can enterprises obtain financial synergies.