LED merger tide does not fall behind the story

Abstract: the current LED industry competition, market disorder, a lot of homogenization, low-end products to snatch the limited channel resources, not only caused the waste of resources, but also weaken the competitiveness of the whole industry. Mergers and acquisitions as an effective way to integrate resources, mergers and acquisitions by enterprises to seize the upcoming outbreak of the lighting market, has become the industry consensus. M & A has the function of optimizing and integrating the enterprise's own resources and the whole industry ecological chain. The successful merger and acquisition can greatly accelerate the development of the enterprise.

With the growth of Chinese enterprises, the intensification of competition, the innovation of business model, and the development and integration of domestic and international capital markets, the phenomenon of mergers and acquisitions in all walks of life has gradually increased in recent years.

LED merger tide does not fall behind the story

Mergers and acquisitions tide

know the actual cause

If M & A is a kind of direction, then the process of M & A is a kind of method, and the method is always related to the interests of the parties or the interests of the parties and the purpose of the original intention is inextricably linked. Industry consolidation will undoubtedly become the industry trend, the stronger the situation has been fully demonstrated. Whether in technology or for the integration of channels, are to meet the era of LED lighting.

In recent years, many mergers and acquisitions in the LED industry, the main features of the following:

1, cross-border or upstream and downstream enterprises to enter the field of lighting mergers and acquisitions, extending the industrial chain to achieve diversification strategy;

2, small and medium enterprises adopt horizontal merger, complementary advantages, the use of the integration of their own strength, enhance core competitiveness;

3, through mergers, acquisitions and other methods to avoid the limitations of patent rights, access to market initiative.

Lighting enterprise quality has become the capital market "xiangbobo" during this period, a sustained profitability and has reached the billion scale enterprises has become a target for all "". And in the domestic LED industry, to meet the conditions of the enterprise less and less, which led to the LED industry mergers and acquisitions market demand situation. In the atmosphere of LED lighting mergers and acquisitions, the normal industry mergers and acquisitions into financial models and mergers and acquisitions game. The emergence of this situation also to some extent affected the normal trading order, pushing up the standard asset prices.

Because of the LED lighting market to bring the change and the market is expected to boom in the past few years, attracted a large number of favored capital, resulting in the LED lighting market competition among enterprises is becoming increasingly fierce, so in a period of time in the future, the integration between the lighting enterprise mergers and acquisitions compared to previous years, will be more frequent strategic intention there are more diversified, lighting enterprises to become bigger and stronger and the acquisition of upstream enterprises also have; in order to enter the downstream application market, to improve the industrial chain of mergers; a lighting enterprise for export to accelerate the development of the domestic market for mergers and acquisitions. These are from the strategic level to consider the capital operation, rather than simple financial investment, such mergers greatly change the pattern of the industry, accelerate the development of the industry. In order to acquire their own mature channels of technology and financial support for the idea of high-end enterprises to carry out mergers and acquisitions, after numerous case studies, does not seem to be a shortcut.