Research On The Motivation And Performance Of Midea Group's Privatization Of Little Swan

With the progress and development of science and technology,enterprises are facing increasingly fierce competition in the market.In order to achieve stable and long-term development,enterprises will choose to expand their scale through mergers and acquisitions.Household appliances industry is no exception.In recent years,the domestic white goods market tends to be saturated,and enterprises in the household appliances industry have increasingly fierce competition for market share.They also carry out mergers and acquisitions one after another.Share-for-share absorption and merger has been developed earlier in western countries,and the application and research of this method in China is still in a preliminary stage.As one of the ways of merger and acquisition,stock-exchange absorption and merger can not only achieve the purpose of ordinary merger and acquisition,but also have its own characteristics.This method can achieve the purpose of expanding their own production and operation scale,improve the competitiveness of enterprises,at the same time,the stock as payment consideration,will not cause excessive financing pressure and greater financial risk to enterprises.This paper selects Midea privatization of the cygnet through share acquisition and merger as the case study,and adopts the case study method as the analysis method.The data and data used in this paper mainly come from wind database,Midea and cygnet's annual report,giant tide information network,netease finance and so on.Firstly,this paper expounds the concept and main ways of privatization,the performance of share exchange and merger and the theory of market timing.Secondly,in the case introduction part,the basic situation and privatization process of the merging parties are briefly explained.Then from the privatization motivation,program content and the timing of the three aspects of analysis;After using event study method,the selection is declared,and privatization of the resumption of day respectively after finishing as the event day,the selected window,for ten days before and after calculating excess returns and accumulated excess returns analysis market reaction,the traditional financial indicators analysis of Midea after privatization of solvency,profitability and so on;Finally,on the basis of the previous analysis,conclusions and inspirations related to the privatization are drawn,which can provide some reference for other enterprises.