Research On The Value Creation Of Midea’s Continuous M & A

Under the background of ’ Industry 4.0 ’,China has introduced ’ Made in China 2025’toencourage the transformation and upgrading of China ’ s manufacturing industry through policies.Under the influence of the above dynamic environment,Midea Group adjusts the development direction of enterprises in a timely manner and puts forward three main axis development strategies,namely ’ product leading,efficiency driving and global management ’.With the transformation and upgrading of enterprises,Midea Group also puts forward the ’ double intelligence ’ strategy(intelligent manufacturing + smart home).If you want to achieve strategic objectives,to achieve the purpose of transformation and upgrading,technology,brand,market and other high-quality resources are essential,but only rely on their own endogenous growth,it is difficult to achieve this leap-forward change in a short time,so mergers and acquisitions become the domestic enterprises to achieve transformation and upgrading of the choice.But how do companies create value through continuous mergers and acquisitions ?Based on this,on the basis of combing the five major M & A events of Midea Group from 2016 to 2018,this thesis analyzes the value creation process of enterprises in M & A by using resource arrangement theory,synergistic effect theory and market power theory from four orders of resource identification,resource acquisition,resource integration and resource utilization in continuous M & A.Finally,based on the effect of resource integration,the use of balanced scorecard to evaluate the effect of value creation from both qualitative and quantitative dimensions.Through the study,it is found that continuous M & A activities are not isolated,but unified service to the strategic development layout of enterprises.Resource layout is essential to realize the value creation of enterprises.Enterprises will first experience the resource combination process of building high-quality resources and stripping inferior resources;secondly,with the deepening of resource integration,integration strategies will also be diversified,such as rich resource integration,pioneering resource integration;finally,through the industrial chain and platform to leverage resources to achieve value creation.According to the research of this thesis,a series of constructive suggestions are put forward for resource integration,hoping to achieve better value creation effect for enterprises in the process of resource layout.