Study On The Synergistic Effect Of Hisense Cross-border Merger Toshiba Visual Solutions Corporation

In recent years,the market scale of some domestic industries has grown slowly or tend to be saturated.In order to find a shortcut to break through their own development limits quickly in the increasingly competitive market environment,domestic enterprises have launched more and more "reverse cross-border mergers and acquisitions" to developed countries.Different from the traditional cross-border M & A,the reverse cross-border M & A of new economy enterprises led by China shows the characteristics of "snake swallow elephant" and "light contact ",that is,the integration of equal cooperation.At the same time,emerging-economy enterprises often face greater challenges and risks when integrating enterprises with higher-end brands,more cutting-edge technologies and a longer history in developed countries.As a result,the research on the synergy effect of hisense reverse multinational Toshiba’ TVS in emerging economies is helpful to promote the correct integration of home appliance enterprises in emerging economies,to obtain greater synergy effect,to break through the original development limits of enterprises themselves,and to supplement the case study of the synergy effect theory in the context of reverse cross-border M & A in emerging economies.This paper,based on the theoretical basis of case analysis,combined with quantitative and qualitative analysis methods,mainly analyzes the financial and non-financial indicators from 2016 to 2019 before and after the merger and acquisition,and analyzes whether the merger has produced synergistic effects from three aspects: management synergy management synergy effect and financial synergy effect.And it is found that the M & A of Hisense and Toshiba tvs has obtained obvious operating synergy and financial synergy effect.After the merger and acquisition,the enterprise has obtained the scale benefit,the sales gross profit rate has increased,the operating income profitability has increased,the core competitiveness of the main products has been enhanced,the market share has expanded;the investor expects to increase,obtains the long-term tax saving benefit.However,the expenditure of management and sales expenses needed for integration after merger and acquisition continues to rise,and the efficiency of enterprise management decreases,which does not reflect the management synergy effect.Finally,this paper summarizes the inspiration of Hisense and Toshiba’TVS cross-border M & A experience,and according to the previous research,puts forward some suggestions on the deficiencies in M & A,so as to provide some reference for Color TV companies in emerging economies to achieve greater synergy effect prevent and control the risk of reverse cross-border M & A.