Research On The Financial Synergy Effect Of Midea's Acquisition Of Little Swan

In October 2018,Midea announced to absorb and merge Little Swan by share exchange,which is the first M＆A case of domestic listed companies absorbing and merging A+B shares.This merger can not only improve Midea’s market competitiveness,but also plays an exemplary role in other home appliance enterprises.Exploring the financial synergy from a new perspective can not only enrich the relevant theories,but also have the practical significance of guiding M＆A.Taking this into consideration,this paper uses the acquisition of Little Swan by Midea as the example of case,and employs the EVA evaluation method and the financial index method to investigate the financial synergy effect in M＆A,as well as the causes of it and strategies to improve it.The goal is to give a foundation for decision-making and direction to other firms.The main contents of this paper include: Introduction to relevant theories of financial synergy of M＆A;Financial synergy analysis of Midea’s acquisition of Little Swan;revelation of case analysis.Firstly,combined with the research purpose and the concept of M＆A and financial synergy,this paper analyzes the M＆A theory,financial synergy theory and EVA theory in detail,building a theoretical support for the whole article.Secondly,based on the introduction of the case of Midea’s acquisition of Little Swan,this paper analyzes the realization and formation reasons of financial synergy by calculating and comparing the EVA and other indicators before and after the acquisition Finally,according to the case analysis results,it puts forward the enlightenment that can be used as a reference for other enterprises in M＆A.The results show that the acquisition has produced financial synergy,and factors such as payment method and resource integration play an important role in the generation of financial synergy.