Research on the Motivation and Performance of Midea Group's Merger and Acquisition of KUKA

Abstract

Merger and acquisition (M&A) is one of the most important investment methods for enterprises. In recent years, sales in the household appliance manufacturing industry have been slowing down gradually. Facing fierce market competition, many household appliance enterprises try to find a new profit growth point through M&A. This paper takes Midea Group's M&A of KUKA as an example to analyze the motivation of M&A through the dimensions of industry and enterprise. It also systematically evaluates the financial and non-financial performance of Midea Group before and after the M&A. It finds that this M&A effectively mitigated the impact of industry cyclicity on Midea Group's financial performance. However, overall, the performance indicators are not significantly improved after the M&A. Therefore, this paper suggests that Midea Group slow down the speed of M&A, pay attention to the existing resources integration, and strengthen the training of professional talents.