Talking About Chinese Enterprises Wanting To Acquire MGM

　　 Marked by the roaring lion. Film Empire Mi Gaomei declared bankruptcy protection recently, and the debt of up to 4 billion dollars will be converted into 95% of the new company. It is reported that Chinese investors are interested in becoming a shareholder after MGM's bankruptcy reorganization. New company But which company is not known at present.

Every time a well-known foreign brand goes bankrupt, news of Chinese enterprises will always be able to make acquisitions. Chinese Enterprises It is a foreign enterprise that has acquired fame and reputation but has no money in its pocket.

From Lenovo's acquisition of IBM PC business to Sichuan's Tengzhong's acquisition of Hummer, to Geely's acquisition of Volvo, and to MGM, the foreign companies that have been acquired are close to a hundred years' efforts to create a series of products with considerable reputation, and have gained world-renowned fame. For example, MGM, more than 80 years old film companies, produced "gone with the wind", "cat and mouse", "007" and other well-known films, but also launched the Academy Award, namely, Oscar, but because of the poor succession team management and crisis. However, the Chinese enterprises that have been launched are only a dozen years old. The popularity of domestic enterprises is mostly influenced by the advertisements in turn, and some are even known for acquisitions. It is felt that these Chinese enterprises are in urgent need of transformation and upgrading after the primitive accumulation of capital, and the best shortcut is to acquire well-known enterprises. Though it costs a lot of money, who will let us have the money? Although the other side is in a state of loss, its brand value, R & D capability and market channels all exist. These things need to be accumulated for many years to complete, and now we can get them if we pay.

I do not disagree with the acquisition, especially the acquisition can obviously benefit Chinese enterprises, and for any enterprise development, the acquisition is a normal way. But we can not fail to notice that the mentality and the way of doing business in the acquisition of the enterprise are great. If the enterprise pursues only the bright face, only once and for all, and abandon the pursuit and R & D of the core technology of the product, then the acquisition of the enterprise will probably be just a temporary profit or even more. Therefore, in order to get what the enterprises want from overseas acquisitions, Chinese enterprises have to give up what they most value in these acquisitions, and take their gaze away from each other and turn their attention to themselves, whether they have the courage to open 100 years old stores and whether they have the mind to make big national enterprises.

Overseas acquisitions in recent years, the lessons learned by Chinese companies are far greater than gains. In 2003, TCL bought Thomson, almost no cash, but Thomson retained the 1/3 share of the TV business, and the production of the most valuable component of the Thomson TV tube was excluded from the transaction. In 2004, Lenovo bought IBM personal computer business, paying $1 billion 750 million, and IBM got up to 19% of Lenovo shares.

According to the data provided by the Ministry of Commerce, the overseas acquisitions of Chinese enterprises remain undiminished. In 1999, the amount of cross-border M & A in China was only 60 million US dollars; in 2005, it reached US $5 billion 300 million; in 2008, it increased to US $30 billion 200 million, accounting for 54% of total foreign investment. Many low-cost manufacturers in China are keen to acquire world-renowned brands in order to expand their visibility and pursue more profitable profits. But the reality is that Chinese enterprises are suffering from indigestion. Compared with those overseas capital veterans, the Chinese enterprises, which were initially involved in capital acquisitions, became the target of being used because of their immature mentality and purpose, and the final result was often "losing their wives and folding their soldiers", which made people lose their money.

　　 If we really want to buy, we need to calmly analyze the reasons and gains and losses, and grasp and absorb the essence of each other, such as production technology, management experience, sales channels, operation mode and so on, not just for a brand's popularity. This is also a reminder to our enterprises how to go our own way and how to create a loud national brand, which is far more worthy of our entrepreneurs' consideration and pursuit than how to get fame through overseas acquisitions.