Research Of The Consolidation Performance Of Sdec

M&A was originated from the west. In recent years, as M&A cases become more popular, its pace of development accelerates in china. However, its operating mechanism is not well-established yet. Engine is the core part of the vehicle, under the pressure of intensifying industrial consolidation, independent engine makers find it's hard to survive in the competitive market environment, thus they are in need of resources integration and scale enlargement, M&A is one of the way to bring the market efficiency they need.The vertical integration between engine makers and vehicle makers helps to increase the efficiency, lower transaction cost, and establish stable supply-sales system. These facts are being acknowledged in the industry. Engine makers seek M&A with vehicle makers in the hope of increasing sales revenue through managing in coordination with the vehicle makers. However, empirically the result of M&A is not as satisfying as they hoped due to certain problems in the process of M&A.This dissertation used the theory of efficiency and theory of transaction cost to carry out a systematic analysis of the performance of SDEC after it has been acquired by SAIC. In our opinion, the acquired should put great emphasis on the period of reconsolidation, constantly evaluating whether being benefited from the better management of the acquirer, whether own business has been included and developed in the supply-sales system of the acquirer. The result of the M&A is determined by the above mentioned points, the ultimate goal is to achieve better sales revenue and sustainable growth for the acquired.There are 6 chapters in this dissertation. Chapter 1, introduction, set the background of the research, literature review including papers from both china and abroad. Chapter2, based on the respective theories, primarily investigate companies, summaries the theory of M&A motivation. Chapter 3, financial statement analysis of SDEC, comparing the performance before and after the M&A. Chapter 4, M&A factor analysis of the performance of SDEC, investigate the effect of respective factors on the performance of the acquired. Chapters 5, from the perspective of consolidated management, propose some suggestions for the further development of SDEC. Chapter 6, conclusion and suggestion...