Analysis On Synergy Effect Of Enterprise Mergers And Acquisitions

With the rapid development of the economy,the competition among enterprises has become more and more fierce,and the development space of enterprises has also been expanding.More and more companies are not satisfied with the existing production scale,hoping to increase market share and enhance the competitiveness of enterprises.But how to solve this problem has become the content of thinking for these corporate decision makers.There is no doubt that mergers and acquisitions are the best way to solve this problem,and mergers and acquisitions can quickly achieve business expansion.M&A has a history of more than 100 years in the world of business.However,in the past 100 years,there have been many cases of mergers and acquisitions at home and abroad,accounting for almost 60% of all mergers and acquisitions.What restricts the success of corporate mergers and acquisitions? The author believes that the most important factor is whether there is a synergy effect of mergers and acquisitions.Based on the mature synergy theory at home and abroad,this paper takes a successful merger and acquisition case in early 2017,Midea Group’s M&A KUKA as an example.It analyzes whether it has synergy effect from three aspects of management,management and finance,and what kind of synergy effect has arisen.And how it works and works.I hope to provide useful reference for other large M&A activities in China.This paper first describes the research background and significance,analyzes and summarizes the literature review of domestic and foreign scholars on mergers and acquisitions and synergies,and explains the concepts and theories of the two.Secondly,this paper introduces the macro background of this M&A case and the industry situation of both parties,discusses the M&A motivation of M&A KUKA,and discusses the feasibility and necessity of M&A activities.By analyzing the financial data of Midea Group in the past three years,we evaluate the synergy effect of mergers and acquisitions from three aspects: management,operation and finance.Through financial data analysis,the positive impacts of mergers and acquisitions on enterprises include: First,adjust the strategic structure,lay the foundation for the transformation of the enterprise,second,play a synergistic effect,promote the development of the company’s business,and third,expand the international market and enhance the international benefits of the brand.At the end of this paper,we summarize thesuccessful M&A cases and make suggestions for other companies in the M&A decision.To achieve the synergy of the company,we must first identify whether there is synergy after the merger,and secondly,we should measure the M&A results and finally choose the appropriate integration method.