Midea Group M&A Case Study On Little Swan

Under the existing socialist economic system with Chinese characteristics,mergers and acquisitions are an important means for enterprises to grow and improve their competitiveness.The number of Chinese enterprises mergers and acquisitions and the transaction volume of mergers and acquisitions have continued to increase in recent years.As our country becomes stronger and stronger and develops better and better,domestic enterprises are getting bigger and bigger.If you want to continue to maintain competitiveness,There is a place at home and abroad,and mergers and acquisitions between enterprises as a major direct investment method have a tendency to expand globally.Whether mergers and acquisitions can really increase corporate value has not yet reached a unified conclusion.On June 21,2019,Little Swan was officially delisted.Midea Group’s acquisition of Little Swan has been settled.However,what is the motivation for Midea Group’s acquisition of Little Swan and whether it can create value for the company after the merger is worthy of us.In-depth discussion.Therefore,the article synthesizes the research results of many scholars at home and abroad,and chooses this case for research.The author first explained the research background of this article and the research Firstly,the author expounds the research background and significance of this paper in the introduction of the article.In order to better study this merger and acquisition,the article refers to many domestic and foreign literature and summarizes them.Secondly,in the second chapter,the theoretical basis used in this merger and acquisition research is explained,which are the two theories of synergy and market power.Then introduced the research content and research methods of this article.Then it introduces the background of the entire home appliance industry,and then introduces the current operating conditions of Midea Group and Little Swan.After that,Chapter 3 also introduces the entire M&A transaction process in detail.After the introduction of the specific situation,the next step is the analysis of the entire merger,analysis from the four aspects of the motivation of the merger,the value creation behavior of the merger,the synergy effect generated by merger and the analysis of the value creation effect of merger by using the financial index method.The fifth chapter is to analyze the enlightenment of this merger for Midea Group and other companies in the future,and finally is the summary of the article.Through the case of Midea’s merger and acquisition of Little Swan,we hope to provide Midea Group and companies that need to merge in the future with experience that can be used for reference..