How to seize the opportunity to become stronger and bigger in the context of the financial crisis is a problem that every enterprise is thinking about. Merger and merger is undoubtedly one of the effective paths. Is it a big step to "go out" to go overseas to bargain-hunting, or is it cautiously laid out? There are many disputes in the industry. The Expert Committee of the China Machinery Industry Federation held a special symposium recently on the theme of the impact of overseas mergers and acquisitions on China's machinery industry. Experts attending the conference believe that China's equipment manufacturing industry has developed to the stage of internationalization. Although there are risks in overseas mergers and acquisitions, enterprises must go through a full assessment and risk argument. However, in line with the principle of having to lose, tuition fees will be paid sooner or later, and powerful enterprises should actively explore the first to “go out†and accumulate experience for peers. Experts suggest that the state should support overseas mergers and acquisitions of equipment manufacturing enterprises in foreign exchange payments. Reorganization is better than blind expansion Under the policy support of the country to expand domestic demand, some industries will inevitably have repeated construction, and then there will be a phenomenon of overcapacity, which is unfavorable for the long-term development of the industry. Yang Baode, deputy secretary-general of the China Construction Machinery Association, said that mergers and acquisitions between domestic counterparts should be encouraged to integrate industry resources. According to reports, the success of domestic mergers and acquisitions is not uncommon. For example, Liugong has merged Jiangyin Machinery Plant, Yangzhou Machinery Plant, Shanghai Forklift Plant, and Zhenzhen Chong Crane Factory to make it a collection of excavation, loading, pavement, concrete, and lifting machinery from a single variety of loader companies. Construction machinery groups produced by various types such as industrial vehicles. Zhonglian and Pu'er have joined forces, and then merged with Huanghe Engineering Machinery Co., Ltd. to become a construction machinery group that produces various types of machinery, tower cranes, compaction machinery, sanitation machinery, and truck cranes. Yang Baode told reporters that there are nearly a thousand domestic enterprises producing construction machinery, which are large but not large, big and not strong. Only mergers and acquisitions according to market rules can be bigger and stronger. At the moment of stimulating domestic demand, industry mergers and acquisitions are more conducive to the development of the industry than blindly expanding investment. He believes that in the process of M&A in the internal enterprises, small enterprises can obtain development funds from large enterprises, use the research and development strength of large enterprises to improve the old products of enterprises, and use the sales network of the group to expand the sales of products. Old enterprises can make full use of the R&D and production of new products, such as equipment, factories and personnel of the original enterprises, which can inject vitality into the original enterprises and improve their adaptability and competitiveness. Yang Baode reminded relevant departments that corporate mergers and acquisitions are a kind of market behavior. Do not make a rigid "Langlang distribution" according to the government's wishes. It is necessary to proceed from the actual situation and interests of the industry and enterprises. Treating cross-border mergers and acquisitions with caution Experts are more inclined to cross-border mergers and acquisitions between Chinese companies investing abroad and “going out†and acquiring foreign companies with core technologies. According to Qi Jiacheng, a special consultant in the instrumentation industry, M&A is one of the main forms of strengthening and expanding in the current competition. At present, the “going out†field of domestic enterprises has gradually expanded from the financial system to the integration of resources such as ore and non-ferrous metals. From the perspective of sustainable development, overseas mergers and acquisitions in the equipment manufacturing industry must also be upgraded from buying products to buying technology, and acquiring core technologies in this field by merging advanced manufacturing enterprises is the fundamental reason for domestic enterprises to become stronger and stronger. It is true that in the current international multinational corporations have been rushing and assets have shrunk severely, there are great risks and uncertainties for domestic enterprises to “go global†and acquire large foreign companies. The relevant person in charge of the Electrical Industry Association combines the actual cases of “going out†of the industry enterprises, and summarizes the risks faced by domestic enterprises in overseas mergers and acquisitions as investment decision risk, financing risk, business management risk, cross-border property risk, and approval risk. Yan Jiacheng believes that capable enterprises should continue to make useful attempts and explorations, but most enterprises should change the concept of “rich and poorâ€. M&A is not just a strong acquisition of the weak, many foreign companies have poor turnover, but have a strong core technology. Moreover, the life cycle of many new technologies is limited, and if they fail to become productive in time, they will soon be eliminated. Therefore, domestic enterprises should go out of the misunderstanding and test the cross-border mergers and acquisitions on the premise of caution. As a pioneer in cross-border mergers and acquisitions, Zhou Benfei, general manager of Guilin International Wire and Cable Group Co., Ltd., which tried overseas mergers and acquisitions in 1992, has his own unique experience. He believes that Chinese companies need to know what they can buy and what they can't. For those big companies, to be mindful of learning, you can first participate in the stock market to become a minority shareholder, or to control a little share, to focus on cooperation with them, and strive for a win-win situation. Experts believe that internationalization can not only be done by large enterprises, but also by small enterprises. The key is to establish a complete risk assessment and demonstration system, to fully understand each other's national conditions, to seek common ground while reserving differences with an open mind, and to do homework in front. The relevant person in charge of the bearing industry association also said that the world financial crisis has also brought great impact to domestic and foreign bearing enterprises. The Schaeffler Group is deeply mired in muddy blindness in acquiring mainland tires, and bearing companies in the United States, Japan and Europe are subject to The downturn in the automotive industry is more serious than that of Chinese companies. Therefore, it is possible to encourage powerful enterprises to participate in mergers and acquisitions, joint ventures, and some high-quality small and medium-sized bearing enterprises to create conditions for China's bearing industry to go global. Zhu Sendi, vice president of China Machines Association, said that for the equipment manufacturing industry, there are many successful cases of domestic mergers and acquisitions, and overseas mergers and acquisitions are still in the exploration stage. He believes that the domestic equipment manufacturing industry has developed to a new stage and should treat overseas mergers and acquisitions with a positive attitude. This is also one of the important ways for enterprises to accelerate their development and an important way to make full use of resources. Enterprises should seize the opportunities existing in the crisis, treat cross-border mergers and acquisitions with a cautious attitude, take into account potential risks, and make useful explorations under the guidance of scientific strategic planning. Hydraulic Pump,Excavator Hydraulic Pump,Hydraulic Main Pump,Excavator Main Pump Jining Juheng Hydraulic Machinery Co., Ltd. , https://www.jhexcavator.com