Research On Enterprise Reverse Cross-border M&A Integration And Value Creation

With the globalization trend of economic development,enterprises in emerging markets are facing shocks and challenges in both domestic and international markets.Emerging market companies can meet this challenge by enhancing their competitive advantage through foreign direct investment.As an entry mode of overseas direct investment,enterprises in emerging markets can acquire core resources such as advanced technologies of developed countries through reverse cross-border mergers and acquisitions of enterprises in developed countries,thereby gaining competitive advantages and realizing value creation.Different from traditional cross-border mergers and acquisitions,reverse cross-border mergers and acquisitions are mergers and acquisitions carried out by companies from emerging economies that are relatively weak to companies from developed countries that have outstanding advantages in terms of brand and technology.In recent years,with the increasing number of reverse cross-border mergers and acquisitions carried out by emerging market companies,the integration after reverse mergers has gradually become the focus of academic discussion.Compared with traditional cross-border mergers and acquisitions,there are many different factors in reverse cross-border mergers and acquisitions.The integration after reverse mergers and acquisitions is very important to the success of mergers and acquisitions and the realization of value creation.Based on the current upsurge of global emerging market enterprises to carry out internationalization and the practical needs of my country’s manufacturing enterprises to implement transformation and upgrading,this thesis selects Midea Group Co.,Ltd.,a leading enterprise in the home appliance industry,to conduct a case study on it,and explores the steps taken by enterprises after reverse cross-border mergers and acquisitions.integration measures and value creation paths.This thesis firstly clarifies the relevant concepts of reverse mergers and acquisitions and mergers and acquisitions integration,and then combines the theory of resource dependence,synergy effect,knowledge coupling theory and absorptive capacity theory,and divides the integration of reverse cross-border mergers and acquisitions into integration background,integration strategy,value creation path,and integration performance.Four parts.After forming the framework,analyze the institutional background,advantage foundation,and predicament pressure of the case company Midea,and divide the integration strategies into independent strategies and dependent strategies according to the specific integration measures Midea has taken,and further analyze how these integration strategies are valued.Creative.Finally,this thesis integrates market performance,financial performance and non-financial performance to measure the integration performance of corporate mergers and acquisitions,and verify the effectiveness of Midea’s reverse cross-border mergers and acquisitions integration.This thesis finally draws the following conclusions:First,in terms of the macroinstitutional environment,when emerging market companies conduct reverse cross-border M&A integration,on the one hand,there is a driving force from the macro-market environment and national policy support,and on the other hand,there are institutional gaps and Resistance brought about by institutional protection in developed countries.At the micro level,strategic capabilities and absorptive capabilities are the basis for the advantages of reverse mergers and acquisitions integration,but also face the dual dilemma of long psychological distance and low strategic consistency.Second,emerging market companies can adopt a combination of independent strategy and dependent strategy after reverse mergers and acquisitions of developed country companies.These two integration strategies are not contradictory,but are complementary and interdependent in essence.Third,the value creation mechanism after reverse cross-border M&A is significantly different from traditional cross-border M&A.Its value creation path includes three aspects:first,improve the efficiency of value creation through the reverse learning mechanism;second,expand the carrier of value creation through the integration mechanism of substitute resources and capabilities;third,enhance the value creation ability of enterprises through the link mechanism.Fourth,the measurement of performance needs to be combined with a variety of indicators for comprehensive evaluation.Financial and non-financial indicators,short-term market indicators and long-term development indicators should be considered comprehensively from a strategic perspective based on the purpose of mergers and acquisitions.Reverse cross-border mergers and acquisitions of emerging market companies are often based on the strategic level.For such strategic acquisitions,we should not only focus on short-term financial data,but the most fundamental is to realize the long-term strategic goal of industrial transformation and upgrading based on the "knowledge spillover effect"..From the perspective of resource dependence,this thesis explores the integration background and strategy of emerging market companies after mergers and acquisitions of developed countries,enriches the research on the integration of reverse cross-border mergers and acquisitions,and also points out the practical direction for domestic companies to implement the integration of reverse cross-border mergers and acquisitions.