Performance Analysis Of Midea's Acquisition Of Kuka Based On EVA

With the rapid development of economic globalization and the increasing marketization of Chinese enterprises in recent years,M&A has become a new strategic choice for many enterprises in China that do not meet their own strengths.On the one hand,mergers and acquisitions can enable enterprises to rapidly expand their scale,complete the survival of the fittest by accelerating competition,and ultimately optimize social resources.On the other hand,mergers and acquisitions are also an important way for enterprises to quickly acquire core technologies,gain new profit growth points,and achieve industrial transformation and upgrading.At present,the home appliance manufacturing industry has entered a critical period of technological upgrading,and the traditional manufacturing model has been unable to meet the needs of future development.In recent years,Midea,Haier,Gree and other China's home appliance industry giants have frequent M&A actions,hoping to gain new profit growth points and gain a lead in a new round of competition.This paper selects the combination of “Made in China 2025” and “European Industry 4.0”,which is the world's most eye-catching – the US acquisition of KUKA as a case study,and analyzes whether the merger actually brings about performance improvement for the Midea,based on the acquisition library based on the United States.On the basis of the development of the card's development status,strategic choices,and the analysis of the causes of mergers and acquisitions,the research and analysis of M&A performance was carried out,and finally some suggestions on management were proposed based on the results of the merger.At the same time,it provides reference for future cross-border mergers and acquisitions of Chinese enterprises.In the choice of method of performance analysis,the research of this paper is not limited to the traditional event analysis method and financial index analysis method,but more comprehensively considers the capital cost of the merger,and uses the EVA indicator method to truly measure the band after the merger.The economic value of the coming,combined with value-driven indicators to conduct an in-depth study of performance changes.In addition,for the analysis of non-financial performance after mergers and acquisitions,a comprehensive study on M&A performance research is achieved.The study found that through the event analysis method,the short-term M&A incident brought wealth to shareholders;in the analysis of financial indicators,the net profit and operating income of the Midea after mergers and acquisitions increased significantly,far ahead of the industry level.However,profitability and operational capacity still need to be strengthened.At the same time,mergers and acquisitions have led to a slight decline in long-term solvency.The analysis of EVA indicators confirms that the merger has brought operational improvements to the United States,creating more value for the United States.It is verified that the profitability and operational capability of Midea M&A still need to be improved through subsequent resource integration.In addition,the brand value of Midea was improved during the merger,deepening the logistics development and automated production reform,helping the Midea “double intelligence” strategy,and opening up the second runway to enter the robot industry,in order to seek new profit growth points.