The Research On Value Creation Of Merger And Acquisition Of Midea And KUKA

Manufacturing is changing,and the demand for technology is in creasing.Although China is one of the countries with a large scale of manufacturing industry in the world,its technology of manufacturing is at a medium level,this has caused some difficulties to the development of Chinese manufacturing industry with the gradual disappearance of population bonus.China has been emphasizing that it should accelerate the construction of a manufacturing power and the development of advanced manufacturing.Possessing the core of technology and the capability of innovation is that must be faced and solved during the transformation and upgrading of China's manufacturing industry.At the present stage,many Chinese enterprises choose to merger and acquire relevant enterprises in developed countries in order to quickly acquire advanced technologies,occupy the international market,and achieve the purpose of improving enterprise value.Therefore,we should pay attention to the ways and sizes of the influence of M&A on enterprise value.Based on the relevant theories of value creation of cross-border mergers and acquisitions,this paper takes the merger and acquisition of Midea and KUKA as the case study object,combines the approaches of the evaluation to the enterprise value,and deeply explores the impact of cross-border mergers and acquisitions on enterprise value and the specific process of the merger and acquisition activities for creation on enterprise value,and it is concluded that the activity has greatly improved the enterprise value of Midea.The main factors affecting the value of Midea include matching target companies,reasonable price,appropriate payment methods,the best forms of mergers and acquisitions,and good integration capabilities.The integration of these influencing factors into the M&A process is:Before the activity happened,Midea comprehensively analyzed its own advantages and disadvantages,it selected the appropriate target enterprises and the way to merger,combined with the development strategy;in the process of mergers and acquisitions,according to their own opportunities and risk,the price and payment method of the merger and acquisition were determined,and the political problem was effectively solved.After the completion of the M&A activity,Midea actively promoted the integration of the two parties and strived to maximize the synergy effect.At present,the main manifestation of Midea's value creation through mergers and acquisitions is the synergy effect of the four aspects of operation,management,finance and strategy.Midea is one of the representative enterprises of manufacturing industry in China,and its development strategy is consistent with the national policy.While constantly investing in independent research and development,Midea also appropriately accelerates the pace of industrial upgrading through merger and reorganization to firmly grasp the market opportunity.Through the study of this case,it is expected to provide reference for Chinese manufacturing enterprises to formulate cross-border expansion strategy,implement cross-border m&a activities and build a good M&A value creation system,so as to promote the sustainable development of manufacturing enterprises.