Research On The Performance And Influencing Factors Of Cross-border M&A Of My Country’s Household Appliance Enterprise

The Fifth Plenary Session of the Nineteenth Central Committee of the Communist Party of China proposed to accelerate the construction of a new development pattern in which the domestic and international cycles are the main body and the domestic and international dual cycles promote each other.Cross-border mergers and acquisitions have a positive effect on the formation of a new development pattern.At present,the golden growth period of home appliance companies based on policy promotion no longer exists,and the upgrading of technology and brands is imminent.Home appliance manufacturing giants use international high-end technology and brand influence to enhance the value chain is an important choice.It is undoubtedly an important choice for home appliance manufacturers to use international high-end technology and brand influence to move up the value chain.In this context,leading domestic home appliance manufacturing companies such as Midea and Haier have implemented cross-border mergers and acquisitions in order to exchange capital for technology,achieve high-quality corporate development,go global through cross-border mergers and acquisitions,and achieve corporate internationalization strategies.But we need to recognize the fact that the results of mergers and acquisitions in our country are not satisfactory,with a failure rate of nearly 80% ranking first in the world.This shows that the research on the performance of cross-border mergers and acquisitions and its influencing factors is very important.In order to learn from experience and lessons.This article takes the Midea of Germany’s KUKA,a leading home appliance manufacturing company,as a research case and uses a combination of qualitative and quantitative to analyze corporate merger performance and its influencing factors.This article first studies the relevant theories of domestic and foreign cross-border mergers and acquisitions to provide a solid theoretical basis for the subsequent analysis of performance and influencing factors;secondly,it briefly summarizes the status quo of the performance of cross-border mergers and acquisitions of China’s home appliance companies,including motivations,performance and influencing factors;Thirdly,in the specific case of Midea’s merger and acquisition of KUKA,we analyze the motivations of Midea’s cross-border mergers and acquisitions one by one from the perspectives of expanding the international market,acquiring advanced technology,and achieving strategic development,to find out the true purpose of the merger;from market performance,financial The three dimensions of performance and business performance compare the performance before and after the merger,analyze whether Midea Group’s cross-border mergers and acquisitions have improved its own performance and the pros and cons of various performance evaluation methods,and finally summarize the influencing factors of performance changes before and after the merger.The enterprise and the government put forward suggestions to provide reference for enterprises in the same industry.The research in this article shows: First,Midea Group’s cross-border mergers and acquisitions have not only promoted the company’s "dual wisdom" development strategy,but also further opened up the company’s overseas market.Second,from the perspective of capital market performance,the market has responded positively in the short term to this merger event,but with the extension of the window period,the effect fluctuates,and further research is needed.Third,from the perspective of financial performance,the financial indicators of the company’s operating ability,profitability,and solvency declined during the year of the merger.However,with the effective completion of the merger and acquisition integration,from the second year after the merger,the indicators have become large.In the long run,the company has great potential for future development.Fourth,from the perspective of operating performance,mergers and acquisitions have created value for enterprises.Fifth,the performance of a company’s capital market is affected by factors such as cash payment for mergers and acquisitions,life cycle and industry status;the financial performance of a company is affected by corporate strategy and efficiency factors;and R&D investment and effective integration after mergers and acquisitions will affect the operation of the company Performance.