A Case Study Of Midea Group Acquisition Of Little Swan

In recent years,with the vigorous development of the domestic capital market,more and more enterprises rely on the capital market for investment and acquisitions,in order to achieve the strategic goal of expanding the market size and improving the competitiveness of the industry.In 2018,Midea Group,a leading enterprise in the home appliance industry,acquired Little Swan by means of share swap and merger.Considering Little Swan’s dual identities in the capital market,this acquisition is of great significance to the home appliance industry and even the entire A-share market.This article selects Midea Group as the research object,centering on the strategic goal of Midea Group’s desire to expand the market share of the washing machine segment,and starting from the long process of Midea’s acquisition of Little Swan,analyzes the motives of the acquisition in the context of holding,and studies the reasonableness of the share exchange price and proportion.And then evaluate the completion of market competitiveness goals and conduct effect analysis.At the same time,considering the existence of derivative influences,this paper selects relevant indicators of innovation ability and synergy ability to evaluate the integration effect.The conclusions are as follows:(1)Enterprises should give full consideration to their own strategic planning when choosing M&A targets,so as to improve their core competitiveness faster and help enterprises to transform and upgrade;(2)Enterprises should consider the effect of different payment methods to avoid excessive financial pressure caused by blind selection when choosing merger and acquisition methods;(3)After the completion of the merger and acquisition of the enterprise,the technical,personnel and management resources of both parties should be fully integrated to maximize the synergistic effect.The contribution of this paper lies in taking the whole process as the research basis,focusing on the analysis of the causes of M&A transactions in 2018,and taking the completion of the merger and acquisition goal as the evaluation guide,adding financial and non-financial indicators such as market competitiveness and innovation management ability to comprehensively evaluate the integration effect of this merger and acquisition.