Study On Financial Performance Evaluation Of Group M & A Of Midea

With the rapid development of market economy in our country,M & A in capital market has become an important means to make enterprises bigger and stronger,and to accelerate the integration of industry economy,industry M & A is a direct way for enterprises to capture market and realize synergy,master advanced technology and management experience,and achieve strategic objectives.However,M & A requires the enterprise to pay a huge amount of money or change of ownership to achieve its goal.If the M & a motivation is not clear,the improper Information asymmetry or M & a strategy of both sides will easily cause the enterprise financial risk,therefore,the motivation of M & A and the choice of payment mode have a great impact on enterprises,and are easy to cause major strategic mistakes.Midea group is a home appliance sales-oriented enterprise,it hopes to increase the competitiveness of enterprises through M & A,accelerate its development.Therefore,it decided to acquire Cygnet by means of M & A,through which Midea group hopes to obtain a large amount of funds to help the company achieve its long-term development goals.The purpose of this paper is to evaluate the financial performance of Midea's share-swap merger and acquisition.Firstly,we should deeply understand the background,process and motivation of the merger and acquisition,the rationality of M & A is determined by evaluating the market value and the M & a ratio of the two enterprises;thirdly,after understanding the changes of the financial situation before and after the M & A of MEI Group,the short-term financial performance of the enterprises is evaluated;finally,based on the20162021 of solvency,profitability,operating capacity and growth,12 influential financial indicators were selected,a factor analysis model is set up to evaluate the horizontal financial performance of the enterprise,at the same time,dupont analysis is chosen to evaluate the vertical financial performance of Midea Group,it also puts forward that the M & A should choose proper M & A Enterprises,M & a methods,pay attention to the resource integration after M & A,and suggest that the enterprises should perfect the financing structure and the current assets management in the future.