Analysis Of The Synergistic Effect Of Transnational M&A

With the development of our country and the growth of domestic enterprises themselves,more and more Chinese enterprises choose to go abroad and participate in international economic activities and competitions.For the current fierce competitive market,if enterprises want to occupy a vast market and enjoy more abundant resources,M & A is a good choice.In early 2016,Qingdao Haier,announced that it has signed a "Equity and Assets Purchase Agreement" with General Electric(GE)to acquire GE's home appliance business for $ 5.4 billion in cash.The deal,setting a maximum amount of China's household electrical appliance enterprises overseas acquisitions.Haier Group said that this integration of GE appliances is Haier's expansion of its business in the United States that will enable Haier's business growth in the Western market quickly.This paper firstly reviews the domestic and foreign scholars' research on the synergy effect and integration of cross-border M&A,elaborates the meaning and evaluation method of M&A synergy effect and illustrates the way of synergy affecting M&A performance.Laying a theoretical foundation for this paper.Secondly,the process of the case is briefly introduced and analyzed.Then through the research on operating,management and financial synergy,it is concluded that the operating synergy effect of the case is in the process of realization.However,management synergies and financial synergies do not show obvious performance in their financial data.At the same time,Haier constantly formulates corresponding development strategies according to the global market and continuously integrates its business operations.The various measures taken to achieve the synergies of M & A also reflect to some extent in some aspect.Finally,it explores the influencing factors in the process of realization of the synergetic effect of M & A.It is divided into the macroeconomic factors,industrial factors,business factors and the characteristics of M & A itself.Then we come to the enlightenment of realizing the synergy effect to enhance M & A performance.It is important to clarify the strategy of enterprise development.Choosing the right target enterprise before M&A.Using reasonable payment method and Financing channels.Attaching importance to the integration.Training professional international talent,build excellent management team.