| With the development of China’s home appliance industry entering the mature stage and the "China Smart Manufacturing 2025" target,more and more companies in the home appliance industry have begun merger and acquisition to promote corporate upgrading and transformation,and even many cross-border mergers and acquisitions have occurred.With the active market of mergers and acquisitions,the biggest problem in the practice of mergers and acquisitions is the strategy of mergers and acquisitions.Due to the development of the capital market,competition between enterprises has become more intense,and the scale of corporate mergers and acquisitions has become increasingly large.Strategy of M & A is the key condition for a company to successfully complete the activities of M & A.At the same time,in recent years,the methods of mergers and acquisitions have begun to diversify.On the basis of cash mergers and acquisitions,some new method have emerged.Share merge has become a widely used means.Therefore,in order to better complete the share merger,the design of plans and the formulation of strategies of mergers and acquisitions also have a certain degree of breakthrough and innovation compared with the past.This article adopts case study and literature research methods,and based on the theory of M & A synergy effect,the theory of market power and the theory of strategic management,selects the case of Midea Group’s share merger of Little Swan as the research object,and studies its strategic choice in the process of merger and acquisition.First,this paper clarifies the concepts,motivations,characteristics,and methods of share mergers by combing existing research and literature at home and abroad.Secondly,this article first analyzes and sorts out the motivation,process and plan of Midea Group’s implementation of this activity of merger and acquisition,and then selects the target company,the price and timing of share merge of the strategic choices implemented to analyze in detail,and the effects of strategic choices were evaluated.Especially in the research on the strategic choice of the price of share merge,combined with the determination of the conversion price and the conversion ratio,an in-depth study was conducted on the leading role of the acquirer in the cash dividend scheme of the target company.Finally,the following suggestions were put forward through the research:(1)Enterprises should be good at using big data and traditional tools of strategic management to identify internal and external environment;(2)The choice of the methods of mergers and acquisitions should focus on cost comparison and advance layout;(3)Set a price adjustment protection mechanism for the interests of small and medium shareholders.This paper finds the following conclusions through research: first,Midea’s share merge of Little Swan is the result of the interaction between the current environment of the home appliance industry and its own development strategy;Second,the plan of Midea’s share merger is cost-effective;Third,Midea Group’s share merge of Little Swan have significant economic effects and can be further improved in the future.Fourth,Midea Group needs to improve the rights and interests protection mechanism for small and medium shareholders.By summing up the successful experience in the case,this article has the following inspirations:(1)The behavior of M & A should be combined with industry development and corporate strategy;(2)In the process of mergers and acquisitions,the best target company should be selected in accordance with corporate’s demands;(3)The company shall weigh the minimum price in consideration of the equity relationship between the two companies.The innovations are reflected in the following three points:(1)The perspective of research is novel.From the perspective of strategic choice,the analysis of Midea’s share merge of Little Swan incident has enriched and expanded the research perspective of the existing literature;(2)The timeline of research is more comprehensive.In the analysis of this article,the case of M & A has been combed over the entire timeline,and the existing research has mostly focused on a certain activity of M & A.The analysis of this activity in the full timeline is very comprehensive;(3)The thinking of research is novel.Different from existing research,this article combines the dividend distribution plan of the target company with the consideration of the share merger,and provides a new idea for studying such problems. |
