Analysis Of The Motivation And Financial Performance Of Midea’s Acquisition Of Kuka

With the implementation of China’s national strategies such as "going out" and "one belt,one road",Chinese enterprises have responded to the call of the national policy to go abroad and take advantage of their own strengths to actively participate in international investment and competition in the international market.At the time of global economic integration and the advent of Industry 4.0 era,domestic household appliance enterprises are in an important period of transformation and upgrading.Many enterprises choose to acquire resources,markets and talents by way of mergers and acquisitions.As a leading enterprise in the domestic home appliance industry,Midea has carried out several overseas M&A activities in recent years in order to consolidate and consolidate the leading position in the domestic home appliance industry and expand the international market,among which the acquisition of German KUKA enterprise has become a classic case of overseas M&A in China.Therefore,how to comprehensively and scientifically evaluate the economic effect of Midea’s M&A of KUKA is of great significance to the home appliance industry and even other domestic enterprises in formulating overseas expansion strategies suitable for their own development stages.This paper takes Midea Group’s M&A of KUKA as a case study,and on the basis of combing the literature related to M&A and strategic transformation,it elaborates the motives of overseas M&A in China’s home appliance industry,and the types of performance evaluation methods are studied.Secondly,this paper uses market power theory,corporate growth cycle theory and synergy theory to study the motivation and results of the acquisition of KUKA by Midea Group.Finally,the long-term effects of M&A transformation and upgrading are studied using the comprehensive financial performance scoring method.The results show that the performance of Midea after the merger of Kuka has achieved the expected goal of M & A,which is helpful to promote the transformation and upgrading of Midea Group and enhance enterprise performance.Although the short-term solvency and profitability of Midea enterprises have decreased,but from the long-term performance of Midea enterprises growth capacity and operational capacity significantly enhanced.Midea has used Kuka’s technological advantages in industrial robotics and automation to improve the company’s production efficiency and drive the company’s manufacturing upgrades.The promotion of market competitiveness,the rise of enterprise value ranking and the enhancement of anti-market risk ability have created new and more value for shareholders and enterprises.