First, mergers and acquisitions in the same industry enhance the core competitiveness of enterprises.
In the past two years, China enterprises have acquired four American manufacturing enterprises in the midwest of the United States, which are basically mergers and acquisitions in the same industry. For example, Dalian Machine Tool Group acquired two enterprises under ingersoll Company, Qinchuan Machine Tool Company acquired American Machine Tool Company, and Shenzhen Container Company acquired and established American Pioneer Container Trailer Manufacturing Company. Through M&A, it not only expanded the export of domestic accessories, but also obtained the production technology, human resources and brand of the acquired enterprise. Through complementary advantages, we can improve the product grade and enhance the strength of the enterprise itself.
For example, Dalian Machine Tool Group invested tens of millions of dollars to wholly acquire ingersoll Production System Company, a well-known American machine tool manufacturing company, and established Dalian Machine Tool Group ingersoll Production System Company, mainly engaged in the production and sales of modular machine tools (production line equipment).
This China-born American company not only owns the famous brands and sales channels in the world machine tool industry, but also has low-cost support from China and 25 sales outlets in Dalian, China. The products are sold in the US market, which can meet the market demand in China. After the normal operation of the company, it accepted orders from countries such as GM and Ford, and the price of each machine tool was as high as more than one million dollars.
China Shenzhen Container North America Company invested and acquired a container trailer manufacturer in the United States. After the acquisition, CIMC North America invested some equipment and funds in time, completed the transformation of the original company's technology and production line, and hired senior professionals to be responsible for the management, sales and finance of the new company. At the same time, CIMC North America pays attention to using the management and technical advantages of its domestic parent company to purchase some raw materials from China to reduce production costs. At present, the company has reached the design and production requirements of an annual output of 8,000 sets, and the annual sales can reach more than 6,543.8 billion US dollars.
Shaanxi Qinchuan Group Co., Ltd. invested and acquired an American Broach &; Machine) production enterprises and their subsidiaries. By combining the technical advantages of Qinchuan Group in cutting, the enterprise is operating normally at present, and besides continuing to produce machine tools, it will also sell Qinchuan Company's products.
Second, acquire sales network, logistics system and brand, and extend the value chain.
The products produced by Chinese-funded enterprises in the United States are mainly oriented to the local market. By investing in M&A, we can make full use of various resources of the original enterprise, including sales network, logistics system and brand, so that China enterprises can obtain more intangible assets.
For example, after Dalian Machine Tool Group acquired ingersoll Production System Company, which was on the verge of bankruptcy, its capital turnover problem was solved, and the company got rid of the predicament and regrouped into normal operation. With its good reputation in the American machine tool industry, the company has attracted many old customers. In recent two years, orders from General Motors (GM), Ford Motor Company (Ford), JohnDeere Tractor Company (John Deere), Delphi Company (Delphi), Caterpillar Company (Caterpillar) and Cummins Diesel Engine Company (Cummins) have filled orders from ingersoll Production Systems Company.
Third, make clear the M&A goal and choose the appropriate way and time.
Adhere to the company's main business, establish a clear development goal and direction, do not blindly pursue the big and ignore the strong, repeatedly demonstrate before the acquisition or investment, and choose the best time to make timely moves.
Dalian Machine Tool Group and ingersoll Production System Company have been doing business for more than 20 years. Dalian Factory has long admired ingersoll's reputation in the machine tool industry and is very familiar with its product technology, quality, market and even leadership personality. Dalian Machine Tool Company resolutely seized the opportunity to acquire the enterprise when insiders learned that the enterprise was poorly managed.
Before the acquisition, Shenzhen Container Company investigated the American market and container trailer industry for nearly two years, selected several acquisition targets in Indiana, and acquired American enterprises through bankruptcy auction. In this way, the financial situation of the auctioned company is completely open, and the buyer can see its debts at a glance.
Four. After hiring a foreign manager to manage the acquisition of the enterprise, the above-mentioned Chinese-funded companies without exception chose a foreign party to take charge and hired local workers. Dalian Machine Tool Group retains all the management personnel of the original factory, and the Chinese side only sends one shareholder representative to the United States. Shenzhen Container Company also hired experienced people in the industry to take charge of operation and management, and China also sent technicians. In the daily operation of the enterprise, local employees are responsible for production, finance and sales. As a shareholder, China focuses on corporate profits, technical exchanges, and domestic matching of some products.
Five, the benefits of enterprises and their local social benefits complement each other.
After Chinese enterprises merged with American enterprises, orders continued to flow and sales prospects were promising. Only one year after the merger, the trailer sales of Shenzhen Container America Company exceeded $6,543.80 billion. Dalian Machine Tool USA seeks to export to China through Shanghai General Motors Company and Hainan Mazda Company. They also bring vitality to the American local economy and create employment opportunities. Dalian Machine Tool USA Company has created 95 jobs for Rochford, Illinois, and Shenzhen Container USA Company has brought more than 300 jobs to the northwest of Indiana, becoming the enterprise with the largest number of employees in Monon City. At the same time, it also made the catering industry in the town live. The investment trends of China enterprises in the Midwest of the United States have recently attracted media attention. Crain's and Financial Times, the Chicago business magazines, objectively reported the investment of China enterprises.