The Performance Analysis Of Merger And Acquisition On The Strategic Shift View

Mergers and acquisitions are a way for enterprises to rapidly realize diversified development and strategic transformation and upgrading.With the advancement of trade globalization and the overseas core technology,overseas mergers and acquisitions have become the choice of many manufacturing companies to achieve their diversified development.Since China launched the “going out” strategy in 1999,the pace of Chinese companies' expansion into overseas mergers and acquisitions has accelerated,and with the strategic guidance of the “Belt and Road” policy,overseas mergers and acquisitions will remain active on the stage of the capital market in the next few years.In 2016,the home appliance industry shined in overseas mergers and acquisitions.Haier spent US$35.1 billion to acquire GE's home appliance business-related assets.Midea's acquisition of 94.55% stake in Germany's KUKA company,with a transaction value of US$29.2 billion,to the field of intelligent robotics explore.As one of the ways for enterprises to achieve strategic transformation,is M&A motivation based on strategic transformation after the acquisition of KUKA in the United States? How to evaluate the performance of M&A based on strategic transformation? Has the performance of the company been improved after the merger? This paper explores the road of industrial upgrading of China's home appliance industry by studying the M&A movement of enterprises based on strategic transformation because of the entry point and through performance evaluation research.1.Research Purpose(1)Exploring the motivation of the home appliance manufacturing industry to make strategic transformation through mergers and acquisitionsFor the motivation research of M&A,the current research results are based on the basic theories such as synergy and transaction cost,and the M&A behavior is analyzed.From the perspective of strategic transformation,there are few studies on the motivation of M&A.This paper will start from the perspective of strategic transformation,analyze the motivation of the strategic level of mergers and acquisitions and the motivation of enterprises to carry out strategic transformation.(2)Constructing a performance evaluation system for M&A based on strategic transformation perspectiveFor the performance evaluation research of M&A,most scholars evaluate it from two aspects: financial performance and non-financial performance.Nonfinancial performance is mostly evaluated from the aspects of synergy effect and market share expansion.It has not been constructed from the perspective of strategic transformation.Performance evaluation system.This paper believes that the realization of strategic transformation is one of the motivations of M&A.By measuring the degree of achievement of corporate strategic transformation goals after M&A,the M&A performance is measured,and the M&A performance evaluation system based on strategic transformation perspective is constructed.2.Main ContentThe main content of this paper is divided into the following several parts:Chapter 1 introduces the research background,puts forward the research questions and the purpose of the research,and expounds the research ideas of the full text,and finally summarizes the main contributions of the article.The second chapter of the literature summarizes the research results of strategic transformation motivation,M&A motivation and M&A performance.The third chapter introduces the connotation of strategic transformation and mergers and acquisitions,combines synergy effect,industry life cycle theory,market power theory and diversification theory to analyze the motivation of strategic transformation and mergers and acquisitions,and at the same time builds M&A performance evaluation framework based on strategic transformation perspective.The fourth chapter is about the background of the Midea acquisition KUKA.Introduced Midea Group and its motivation for strategic transformation,and introduced the target company,M&A process and M&A motivations in detail.The fifth chapter analyzes the performance of Midea M&A KUKA from the perspective of improving product competitiveness.This chapter analyzes whether the merger and acquisition has achieved the strategic goal of improving product competitiveness from the two non-financial aspects of R&D capability,product market share,product structure and brand value.The study found that from a non-financial point of view,mergers and acquisitions have achieved the strategic goal of improving the competitiveness of enterprise products.From a financial perspective,mergers and acquisitions have reduced the company's profitability indicators,but have strong growth capabilities.Overall,mergers and acquisitions have improved enterprises.Strategic goals for product competitiveness.The sixth chapter analyzes the performance of Midea M&A KUKA from the perspective of improving the efficiency of enterprise management.This chapter analyzes whether the mergers and acquisitions have achieved the strategic goal of improving the efficiency of enterprise management from the two non-financial aspects of saving enterprise costs,reducing business risks and improving logistics efficiency,and the two financial aspects of operational capability and solvency.The study found that: in the non-financial aspect,M&A achieved the goal of improving the efficiency of enterprise management,but the conclusion from the financial point of view is that M&A has not significantly improved the management efficiency of the company.Based on the analysis of the two aspects,M&A has basically achieved the goal of improving management efficiency.The seventh chapter analyzes the performance of Midea M&A KUKA from the perspective of achieving global management.Non-financially,this chapter evaluates the results of globalization after the merger of Midea Group;financially,this chapter evaluates the income of Midea Group.The study found that mergers and acquisitions have achieved the goal of global business management.The eighth chapter is conclusions and recommendations.This chapter summarizes the research conclusions that M&A basically achieves the strategic objectives of M&A and improves corporate performance.In general,mergers and acquisitions have a positive impact on company performance,and finally made recommendations for mergers and acquisitions.3.Contribution and deficiency of this paperThe contribution of this paper are: First,from the perspective of strategic transformation,in-depth analysis of the strategic level of the company's mergers and acquisitions and the motivation of the company's strategic transformation.Secondly,by measuring the M&A performance of the enterprise's strategic transformation goals after the merger,the M&A performance evaluation system based on the strategic transformation perspective is constructed.The shortcomings of this paper are: First,the qualitative indicators are not quantified,and it is difficult to reflect the true performance of the enterprise as a whole.Second,the short time interval of the study may not be a good indication of the long-term development of Midea.Third,this article attempts to reach an overall conclusion through the Midea's acquisition of KUKA,without considering the differences between different companies.