Research on the Merger and Acquisition Performance and Brand Management of Cross-Border LBO—Take Qumei Home’s Acquisition of Norwegian Ekornes Company as an Example

With the rapid development of China’s economic globalization and the implementation of “going out”, “Belt and Road” and “Made in China 2025”, Chinese enterprises begin to seek the transformation and upgrading of product structure, improve product layout and technological innovation, and strive to expand overseas market, expand market share, improve the competitiveness and international influence. In recent years, more and more enterprises begin to try to achieve rapid development through cross-border merger and acquisition activities. However, many studies point out that the overall success rate of cross-border M&A of Chinese enterprises is relatively low, and the profitability is not ideal.In this context, this paper will use the case that Qumei Home acquired Norway Ekornes ASA company in 2018 as the analysis object. First, PEST analysis was used to macroscopically analyze the development of status and trend, and the situation of M&A in the furniture industry. Meanwhile, from the micro level, this paper will elaborate and analyze the process of this M&A case. Next, this paper analyzes the merger and acquisition motivation of Qumei Home from internal factors and external factors; then, this paper selects 3 listed companies in the furniture industry as the benchmarking enterprises, and uses the method of financial index analysis to analyze and demonstrate the impact of this M&A on Qumei’s financial performance and corporate value from horizontal and vertical aspects. Finally, this paper uses the method of brand matrix analysis to analyze and discuss the brand matrix change and brand management after the M&A. Based on the above research process, the following research conclusions are drawn: First, mergers and acquisitions have become the trend of the domestic furniture industry. Also, cross-border mergers and acquisitions can promote enterprises to expand the market and pursue international development. The motivation of Qumei Home’s cross-border merger and acquisition also lies in this. Second, Qumei Home’s acquisition of Norwegian Ekornes company has both positive and negative impact on Qumei’s financial performance. And the negative impact on the solvency and profitability is more obvious. Third, Qumei Home’s acquisition of Norwegian Ekornes company has little negative impact on Qumei’s stock market value and investment value in the furniture industry, and the value is still in a relatively medium and balanced position. Fourth, Qumei Home’s acquisition of Norwegian Ekornes company enriched the brand matrix of Qumei Home. In addition, Qumei Home has played a better role in brand management and brand synergy, so that after the M&A, the brand has achieved mutual empowerment and joint development. This paper holds that enterprises need to broaden financing channels, innovate payment methods and enhance their integration ability when carrying out cross-border mergers and acquisitions. At the same time, after M&A, enterprises should also focus on the possible influence on performance and brand, and prevent financial risks and so on.