Research On The Motivation And Performance Of Haier’s Continuous Overseas Mergers And Acquisitions

Overseas mergers and acquisitions of home appliance companies have become an important means of transformation,upgrading,and expanding market share.However,some home appliance companies have failed due to insufficient experience in overseas mergers and acquisitions and blind mergers and acquisitions.From 2011 to 2018,Haier has successively acquired Sanyo of Japan,Fisher&Paykel of New Zealand,General Appliance of the United States and Candy of Italy,becoming a pioneer of overseas continuous mergers and acquisitions in the household appliance industry.Therefore,the purpose and significance of this study are to determine whether Haier’s continuous overseas M&A performance has achieved the expected goals,whether it is conducive to Haier’s sustainable development,and whether it can provide experience for overseas M&A activities for other home appliance enterprises.Firstly,this paper combs the related literature of continuous mergers and acquisitions,defines the concepts related to continuous mergers and acquisitions,clarifies the synergy theory,economies of scale theory,information Signalling theory theory and market power theory as the theoretical basis of this study,and analyzes the internal and external factors that affect the performance of continuous mergers and acquisitions,laying the foundation for the following research.Secondly,an overview and merger process of both parties involved in Haier’s overseas continuous mergers and acquisitions were introduced.Once again,analyze the motivations for mergers and acquisitions from both internal and external perspectives,and introduce the integration situation after Haier’s merger and acquisition.Then,through the Event study method,the short-term market performance of continuous mergers and acquisitions is analyzed;Analyze the management synergy effect,operational synergy effect,and financial synergy effect after Haier’s merger and acquisition by calculating financial and non-financial indicators;The change in EVA value of Haier from 2010 to 2021 was calculated using the economic value added method.This indicator,after necessary adjustments to accounting information indicators,can better reflect the true performance of the enterprise.Finally,based on the results of the above calculations and analysis,relevant research conclusions are drawn.The research results of this article indicate that the external motivation for Haier’s continuous overseas mergers and acquisitions is to fully utilize opportunities encouraged and supported by policies;The home appliance industry is in the stage of industrial transformation.Internal motivation: Implementing Haier’s global layout strategy;Obtaining advanced overseas technology and high-level scientific research talents;Enhance Haier’s brand effect and increase market share;Utilize synergies in mergers and acquisitions.In terms of continuous M&A performance: In terms of short-term performance,the calculated CAR values for all three mergers and acquisitions except for Sanyo were negative,and showed an upward trend after fluctuations,bringing an increase in corporate value to Haier in the short term.In terms of synergy effects,management synergy,operational synergy,and financial synergy have all played a role.Haier’s market share,brand value,and enterprise research and development level have significantly improved,and the enterprise’s development ability is good.However,its asset management ability,profitability,and debt repayment ability are average,and attention should be paid to the high debt and asset turnover situation of the enterprise.At the level of economic value added,except for the significant investment and rising raw material prices caused by the acquisition of General Motors,which resulted in a decrease in the company’s EVA value,the EVA value doubled and increased in the second year of the acquisition.The EVA value after the other three mergers and acquisitions has significantly increased.Overall,continuous mergers and acquisitions have a beneficial impact on Haier’s overall performance.By summarizing the research results of this article,the following experiences can be drawn to provide reference for overseas mergers and acquisitions in the home appliance industry: formulating clear merger and acquisition plans;Conduct sufficient investigation and evaluation of the target enterprise before the merger and acquisition;Reasonable selection of financing and payment methods;Pay attention to the risks related to overseas mergers and acquisitions,and ultimately achieve the goal of improving the success rate of mergers and acquisitions in the home appliance industry.