Study On The Motivation And Performance Of Continuous Mergers And Acquisitions Of Household Appliance Enterprises

In the process of the rapid development of the national economy,the economic and market environment increasingly highlights the intensity of competition among various industries,and the purchasing power of consumers is getting higher and higher.In order to occupy market shares and continuously improve product quality,enterprises will expand their scale and enhance their brand image to meet the growing demands of consumers.Such enterprises will choose to achieve their expansion through mergers and acquisitions.Merger and acquisition is an emerging economic activity in our country.With the rapid development of industrial economy,there are more and more acquisitions between enterprises,and the scale and quantity are also increasing.Mergers and acquisitions between companies have been going on for a long time in developed countries such as Europe and the United States,many of which have seen big waves of mergers and acquisitions.Since mergers and acquisitions entered China,Chinese listed companies have also carried out a large number of mergers and acquisitions,and the frequency,quantity and scale of mergers and acquisitions are constantly increasing.Some companies also have mergers and acquisitions and reorganizations,which will actively boost the steady development of Chinese capital market towards the direction of high-quality development,which has become the focus of academic attention.Midea Group is a typical multinational enterprise.Previous studies focused on the operating performance of a single enterprise of Midea,but lacked a comprehensive analysis of the operating performance of its continuous mergers and acquisitions.In 2015,Midea Group has been preparing for a large-scale continuous merger and acquisition.In 2016,Midea Group announced to transform from a manufacturing enterprise to a technology enterprise.For this reason,the company has carried out a series of merger and acquisition activities,from Japan’s Toshiba Electrical Appliances to Germany’s Kuka Group,etc.This is the largest continuous merger and acquisition case in China at present,which is of high research significance.Taking Midea Group’s continuous mergers and acquisitions as a case,this paper firstly reviews the relevant research results on the continuous mergers and acquisitions at home and abroad,explains the research status of the continuous mergers and acquisitions at home and abroad,and then expounds the motivation of the continuous mergers and acquisitions,as well as the performance evaluation methods of the continuous mergers and acquisitions.Then,based on the background of household appliance industry,the motivation and performance evaluation methods of enterprise continuous mergers and acquisitions are defined.Then,using the relevant theories of market power and synergistic effect,this paper introduces the merger parties and the general situation of the merger,and analyzes the continuous merger motivation of Midea Group.The research and analysis of this paper shows that Midea Group constantly carries out merger and acquisition activities,its purpose is to strengthen its industrial chain,obtain technology and other resources,occupy the market,and improve its brand image in the world.In addition,combined with economic added value method,financial index method,non-financial index method and other performance evaluation indicators,in-depth analysis of Midea Group’s performance changes before and after successive mergers and acquisitions.Finally,according to the results summarized from the above analysis,the corresponding improvement suggestions and relevant enlightenment are put forward.The financial index method is adopted to analyze the relevant data of the case.The research conclusion shows that,even if the current Midea Group is affected by the negative impact of continuous mergers and acquisitions,the existing relevant profit indicators show a negative floating trend,but from the perspective of strategic development to re-examine the profit level of Midea Group,it can be found that the profitability of Midea Group has been effectively improved to a certain extent.Although the debt service index of Midea Group also showed a negative trend with the profit index,but with the gradual progress of the merger and acquisition process of Midea Group,it gradually turned to play a positive role.In terms of operation indicators,it can be seen that the daily operation ability of enterprises has been improved;From the perspective of development indicators,when Midea Group completed successive overseas mergers and acquisitions,the operating revenue of the enterprise was in a trend of increasing,and the profit margin of the enterprise was greatly increased,but it did not fully show the development trend of the turnover reaching the peak in the initial stage of the merger and acquisition.Taking economic added value as an analysis indicator is sufficient to show that Midea Group always maintains a dynamic equilibrium state,and its economic added value is always in the positive numerical category,which is sufficient to show that the enterprise continues to output positive value during the period of merger and acquisition.Through the above analysis,suggestions are put forward for Midea Group: pay attention to the integration of corporate culture after merger and acquisition;At the same time,the company should also keep up with the pace of policy,keep up with the development trend of the industrial environment,and pay attention to the overall situation of the company.This also provides some references and suggestions for other enterprises in the household appliance industry: when carrying out mergers and acquisitions,they should choose a suitable target for their own mergers and acquisitions,focus on improving their core competitiveness,as well as the integration after successive mergers and acquisitions,and evaluate the target enterprises better.It should be guided by the overall development strategy of the enterprise and pay attention to the collaborative management after merger and acquisition.