Research On The Performance Of Midea Group Stock-for-Stock M&A Little Swan Company

After years of development,home appliance industry has become one of the most competitive and homogeneous industries in the domestic market.In recent years,with the further increase of downward pressure on the domestic economy,the survival and development of the household appliances industry is increasingly difficult,the product competition in the industry is going to further fierce,and some enterprises have to seek a faster and more efficient business model.To quickly occupy the market in the industry and quickly have leading technology.Among the many ways to open the market,M&A is regarded as one of the patterns for enterprises to quickly open up new space for growth,open up new fields of performance growth,and Strategic layout of expansion.Therefore,more and more home appliance enterprises step into the ranks of M & A in order to realize their own development needs,so as to realize the greater market value of enterprises,Midea Group is one of them.Midea Group,a leader in home appliances,absorbed and merged Little Swan Company in the capital market in 2018 through a share swap.This stock exchange merger and acquisition will make the group lose the opportunity of financing in the A share and B share capital market,why the group of Midea to achieve the last remaining 47.33% of the Swan through the stock exchange merger and acquisition,the motivation behind and the selection of merger and acquisition methods are worth studying and analyzing.This paper takes Midea Group’s share swap and merger of Little Swan as the research object,and on the basis of fully examining the research results of domestic and foreign scholars on the motivation and performance of mergers and acquisitions,through a case study of Midea Group’s merger and acquisition of Little Swan,an in-depth introduction The basic operating conditions of Midea Group and Little Swan Company are analyzed,and the design and implementation of Midea Group’s merger plan and the merger process are analyzed.The motivation and performance of Midea Group’s mergers and acquisitions are the focus of this article.After analyzing the motivation of M&A combined with the actual situation of Midea,the short-term market reaction after Midea is analyzed through event research.Through the accounting index method,the long-term operating performance of Midea is analyzed.Finally,combined with the above research and analysis,measures and suggestions are put forward on how to successfully realize the merger of Midea Group.Through the analysis of the motivations of mergers and acquisitions,Midea Group’s stock exchange merger Little Swan has the following motivational considerations: First,to integrate internal resources and improve operating efficiency;Second,to save transaction costs and improve strategic layout;Third,enhancing R&D capacity and expand market share.According to the calculation analysis of M&A performance in the case study,the capital market is not optimistic about the M&A event,which is beneficial to the shareholders of Swan on the whole,but does not have a positive effect on Midea Group.In the long term,Midea Group’s comprehensive M&A performance has been improved to a certain extent,in which its debt paying ability has been significantly improved,but its profitability and asset operation ability have not produced significant positive effects,and its long-term M&A performance results still need to be further observed and verified.It is recommended that Midea be more carefully to the progress of the group’s internal resource integration and summarize the experience of mergers and acquisitions to promote the continuous improvement of the group’s profitability.