Research On The Merger And Acquisition Performance Of Hisense Visual Technology Co.,Ltd.and Toshiba Visual Solutions Co.,Ltd.

Since the reform and opening up,Chinese enterprises have been accelerating the pace of going global,and overseas mergers and acquisitions have occurred frequently.As the leaders of “going abroad”,the purpose of overseas mergers and acquisitions has changed significantly with the improvement of my country’s independent research and development capabilities and the changes in the status quo of industry development.After decades of development of home appliance companies,the industry as a whole has entered a mature period,followed by the dilemma of overcapacity,reduced market demand and saturation of market capacity.As the industry ceiling approaches,the pursuit of industrial upgrading and transformation has become the choice of many traditional manufacturing companies to achieve the same goal.The color TV industry is the earliest home appliance industry,and the contradiction between supply and demand between the continued weakness of market demand and the excess capacity of upstream panels is particularly prominent.However,with the development of 5G and artificial intelligence technology,the color TV industry is facing three major opportunities of comprehensive Internet of Things,internationalization,and updated consumption,and the industry’s development is entering a new stage.This article takes Hisense Visual Technology’s acquisition of Toshiba TV as the research object,and analyzes the performance of this acquisition to provide reference for home appliance companies to carry out industrial upgrading and transformation through overseas mergers and acquisitions.On the basis of systematically sorting out related theories and literatures such as M&A motivations,M&A performance and evaluation methods,this paper uses M&A performance evaluation as a research topic to construct a system from M&A background to M&A motivations to M&A performance evaluation.Using the case study method,the case of Hisense Visual Technology’s acquisition of Toshiba Visual Solutions was applied as a specific research object to the framework of the evaluation system.Based on the background of the merger,the non-financial and financial motivations of the merger were analyzed and the performance of the merger was tested.In terms of M&A performance testing,the evaluation of M&A performance is carried out from the two dimensions of financial and non-financial performance,short-term and long-term performance.The event research method is used to analyze the short-term financial performance.The excess returns obtained through calculations indicate that the market has reacted indifferently to the merger and the short-term performance of the merger is not good.In terms of long-term financial performance evaluation,the traditional accounting index method and the principal component analysis method are combined,and the evaluation results of the two methods on the M&A performance are roughly the same.The results show that mergers and acquisitions have reduced Hisense Visual Technology’s debt solvency and its operating capabilities have not been improved,but its development capabilities have been greatly improved and its profitability has also been improved.In terms of non-financial performance,M&A performance and M&A motivation basically corresponded,and the purpose of this M&A was basically achieved.On the whole,the acquisition is consistent with the development strategy of Hisense Visual Technology,and has played a good role in promoting the transformation and upgrading of Hisense Visual Technology.