Research On The Value Creation In M&A Of Haier And GE Appliances

With the economic globalization and the increasingly fierce market competition,cross-border mergers and acquisitions has gradually become an important way for the rapid development of enterprises.In recent years,China’s household electrical appliance enterprises in the increasingly fierce market competition,many household electrical appliance enterprises began to implement cross-border mergers and acquisitions to seek new development opportunities,expand foreign market share,the implementation of international and global strategy.However,there is a lack of research on the value creation of cross border M&A in household electrical appliance enterprises in China.Therefore,this article through the research on the value creation in M&A of Haier and GE Appliances,trying to explore the merger whether to create value for Haier,how to create value and create what value.From the four aspects of merger motivation,merger integration,synergy and financial performance,this paper analyzes the value creation and the damage factors,and summarizes the process of value creation.This article thinks that after the Haier merger and acquisition,the income growth rate is obvious,the cost synergy effect is remarkable,the brand value promotion is obvious,the management ability has been remarkably enhanced,and the synergy of the production factors has created the enterprise value.However,the enormous financial pressure also brings great risks to the future business activities of enterprises,and reduces the value of some enterprises.Finally,the research prospects and the shortcomings of this paper are put forward.Hope that through the analysis of this article,for Haier and other household electrical appliance enterprises in the future to provide a reference for overseas mergers and acquisitions.