In recent years,the scale of China’s manufacturing industry ranked first in the world,has made considerable development,the private economy in the small and medium enterprises to promote China’s economic development role more and more,has become the country to promote the economic development of a powerful booster.However,China’s private enterprises are suffering from a lot of pressure from both inside and outside,especially in the low end of the industry value chain,labor-intensive small and medium enterprises,with the closure of a large number of small and medium enterprises,private enterprises are under severe the crisis,which will certainly affect China’s economic development and stability.To help private enterprises to escape the current difficulties,the transformation and upgrading of enterprises is very important ways.However,many private manufacturing businesses are more vulnerable in terms of innovation,in terms of "core,high-end,based" management,key technology,key components is not strong,industry issues highlighted in the "big but not strong",has become a business transformation and upgrading of serious resistance,limiting the company’s long-term development and stability.Qingdao City Hardware Manufacturing industry representatives(Qingdao DND)as the research object,the field of enterprise-depth investigations and studies,the use of management and economics and other related theories and research around the status of development of the industry in technological innovation and upgrade basic management discussed on the private manufacturing enterprises in overseas mergers and acquisitions,the effective promotion of business transformation,achieve optimization and upgrading strategy.The results will provide the structural adjustment and development of private small and medium enterprises related to the theoretical basis and practical reference case,a certain social significance.