A Case Study On Midea Group Merger Cygnet

As China’s economic development has entered a new normal,the Chinese economy has improved quality and efficiency and shifted to a new pattern of high-quality development.At the same time,the growth rate of China’s home appliance industry has slowed down,and the development stage has gradually entered a mature stage.In recent years,with the planning and landing of the goal of "Made in China 2025",more and more home appliance enterprises have begun to adjust their development strategies to promote the transformation and upgrading of enterprises.At the same time,along with the reform and development of our capital market day by day,the enterprise financing channels are constantly expanding,and the consolidation market of our country is becoming more active.Enterprise merger provides a way for enterprises to achieve their own strategic goals and quickly acquire high-quality assets.In the current merger practice,the biggest problem faced by enterprises during the merger is the formulation of merger strategy and the selection of merger objects.In the process of merger,the key conditions for the success of the merger are whether the enterprises can formulate the appropriate merger plan and select the appropriate merger enterprises according to their own development stage and development strategy.By combing the merger theory,this paper selects the case of Midea Group stock exchange merger cygnet as the research object,and adopts the case study and literature research method to study the merger object selection and the effect of merger strategy in the merger process.Firstly,by summarizing the existing research and literature at home and abroad,this paper makes clear the concept,motivation,characteristics and methods of merger.Secondly,the rationality of the target enterprise selection is analyzed,and the whole process of the merger plan is analyzed.Finally,the financial index analysis method and economic value added method are used to study the integration performance after the merger,and combined with the enterprise’s own strategic goals,to judge the actual effect of the merger.The study found that Cygnet has a high market share,mature research and development technology,abundant cash flow has become the target of Midea Group at this stage of the implementation of merger activities,and Cygnet can promote the channel integration of Midea.The merger plan of Midea Group is cost-effective in terms of the merger consideration design,and the economic effect of this merger is remarkable,which can be further improved in the future.In addition,in the process of Midea Group merger,the rights and interests of minority shareholders protection mechanism needs to be improved.Based on the case analysis of the merger of Midea Group and Cygnet Company,this paper can enrich the research on the strategic merger of enterprises.Based on the research results,this paper gives some successful experience,hoping to provide some reference and help for other enterprises’ merger activities...