Corporate Performance Analysis Of Haier’s Overseas Acquisition Of Candy

Since the reform and opening up,China’s home appliance industry has made tremendous progress,driving the booming market economy of various countries,and in recent years,China’s home appliance production has been at the forefront of the world.In order to further promote the rapid development of home appliance enterprises,the Chinese government has introduced a series of policies to support overseas mergers and acquisitions to improve the strength and international competitiveness of local enterprises.With the help of the policies and the acceleration of global economic integration,more and more local enterprises have tried overseas M&A to enhance their market position,increase their R&D capabilities,and thus improve their profitability and achieve their rapid development.In this context,this paper investigates the M&A of specific Chinese home appliance companies,which can not only enrich the world’s overseas M&A research,provide Chinese companies with case studies and help the development of overseas M&A theory,but also provide more realistic references for domestic companies to go global and accelerate China’s economic take-off.Through the introduction of relevant theories and related concepts,this paper basically constitutes the theoretical framework of the study,and then carries out a specific study in conjunction with the overseas M&A case of Haier Zhijia’s overseas M&A of Candy,Italy,on January 4,2019.Firstly,a detailed analysis and a brief discussion of the process and background of the overseas M&A case of Haier Zhijia in Candy,Italy are launched,introducing the basic conditions of both companies and the motivation of the M&A.Then,the performance of this M&A event is analyzed and evaluated from three perspectives: financial,non-financial and EVA.From the financial perspective,the data in the financial statements,combined with profitability,operating capacity,solvency,and development capacity,can basically derive the short-term M&A performance and long-term M&A performance of Haier’s M&A;then,through EVA,the overall value of the enterprise is evaluated with the adjusted financial statement data to derive the in-depth performance results of Haier Jiya’s M&A activities;finally,non-financial performance is used to supplement the financial performance indicators and EVA evaluation system failed to cover the range of enterprise value.Combining the evaluation results from the three perspectives and synthesizing the corporate M&A performance,a more comprehensive and referenceable conclusion can be drawn to evaluate the overall results of M&A and to make more specific recommendations for Chinese companies going overseas.The study found that,after Haier Zhijia’s overseas M&A,Haier Zhijia basically realized the synergy effect with Candy,and several figures of financial indicators grew against the trend,EVA indicators also improved in the year of M&A,and technology targets among non-financial indicators made great progress.It can be concluded that Haier Zhijia achieved short-term and long-term performance development in multiple dimensions in this M&A,and basically realized the M&A objectives.This success is attributed to Haier Zhizhijia’s rich overseas M&A experience,and the success of many M&As has also laid a solid foundation for the success of this event.Through an in-depth analysis of the successful case of Haier Zhijia’s overseas M&A of Candy in Italy,this paper provides a valuable reference for Chinese enterprises in the home appliance industry as well as other enterprises to help Chinese enterprises better implement their globalization strategies and achieve greater success in overseas markets.