HE Merger And Acquisition GE Financial Performance Study

As the internationalization process accelerates and the consumer’s material demand increases,HE,as one of the giants of the home appliance industry,after experiencing the market downturn,more aware of the limitations of their own development,it is difficult to rely on their own R&D ability to have a place in the international stage.Even if it has entered the foreign market,because of the difference of culture and consumer preference between countries,the market has been occupied by well-known brands abroad,and it is difficult to be accepted by local consumers.Cross-border M&A has two sides,and for some enterprises that have entered the foreign market,cross-border M&A can obtain more advanced R&D technology and complete it Combined with high quality resources,so that enterprises can get better development in the international market;there may also be some hidden dangers,and these hidden dangers are more from the M&A process need to pay a lot of cash,will bring financial risks to enterprises.Therefore,in the process of M&A should take into account the influence of various external factors.This paper mainly from the perspective of M&A,take the HE M&A GE as the research object,mainly from the financial index method and the economic added value method to carry on the financial performance research.The financial index method mainly studies from four aspects: profit,debt service,operation and development,and understands the market development trend according to the changing trend of the index.The adjustment of accounting subject will be involved in the analysis by using the economic increment method,and it is necessary to identify which accounting subjects are important,such as some accounting subjects which will not have a material impact on the results of the study,and can choose not to adjust,and judge the operation of the enterprise according to the calculation results.Research results show that: in the horizontal analysis of the use of financial indicators method,it is found that the financial performance of the HE in the year of M&A is obviously improved,and the second year of M&A shows a downward trend,gradually approaching the level before M&A,which shows that cross-border M&A can indeed promote the development of enterprises in the short term;in the long run,HE financial performance after M&A is not prominent.The longitudinal analysis found that HE overallfinancial performance was better than the industry average,but lower than MD.overall EVA method can be used to see that the value of the EVA is greater than zero,indicating that the enterprise has a profit.Based on the above results,HE found There are problems in consumption habits,prices of raw materials,and solvency.In order to better analyze the financial performance,according to the problems existing in the research results,put forward valuable suggestions according to the actual situation of the enterprise.