Research On The Choice Of Payment Options For Cross-border M&A In Household Appliance Industry In China

In 2015,China formally promulgated the concept of "Made in China 2025",making it clear that advanced manufacturing industry is one of the ten key industries.As a representative branch of the manufacturing industry,the home appliance industry has successfully completed a number of multinational mergers and acquisitions with huge transaction amounts in recent years in order to achieve strategic transformation.With the encouragement of policies and the increase of M & A experience,cross-border mergers and acquisitions in China's home appliance industry have grown from buying bad foreign business to buying foreign enterprises that have the potential of development according to their own needs.The biggest problem in cross-border mergers and acquisitions is whether the mergers and acquisitions can have a positive impact on the business,so payment of M & A is the key to solve this problem.When choosing the payment of M & A,enterprises should not only consider their own financial status,but also pay attention to the impact caused by the macroeconomic environment.Slight carelessness will exert enormous pressure on the operation and financial difficulty after the enterprise.Finally,the act of M & A for the business will not be worth.The majority of domestic and foreign scholars in the study of cross-border M & A payment have used empirical research to enrich relevant theory,but seldom take a case study.Most of the relevant theories are based on the actual situation of developed countries,so whether such a theory is applicable in China has become controversial.This article takes the cross-border mergers and acquisitions activity in the home appliance industry as an entry point,and uses the case analysis method to study the M& A payment methods chosen by the Midea acquired KUKA.Based on the detailed summary and conclusion of the motivation and effect theory of cross-border M & A,this paper analyzes the recent status of the cross-border M & A payment methods,and discuss the reason of the single payment method.As for the key content,this article analyzes the macro environment,the industry background and the situation of both companies,making a good bedding for the later analyzing of influencing factors,which is combined with the theoretical study.In addition,this article also studies the market performance and financial management of Midea after its acquisition of KUKA,in order to determine the impact of the acquisition on Midea.Finally,the author summarizes the antecedents and consequences of the case,the experience of reference and the argument of the previous theory,then put forward some suggestions on cross-border M & A and its payment options in Chinese enterprises.Hoping to help our enterprises to better go international.