The Research On The Performance Evaluation System For The Overseas Merger And Acquisition Integration Based On The Balanced Scorecard

As an important way of allocating resource, merger and acquisition (M&A) playsan important role in our country’s economy. Overseas M&A is an extension ofdomestic enterprise’s M&A, and it involves enterprises from two or more than twocountries. Namely, one country’s enterprise gains or controls equipment, humanresources, brand, technology, market channel network, social relations, and so on,owned by another country’s enterprise through certain channels and payment means.With the acceleration of the global economic integration, our country’s overseasM&A occurs more frequently in order to gain access to foreign advanced science andtechnology. But the results are far from satisfactory. There are many factors that cancause the failure of our country’s overseas M&A, but the most important one shouldbe the two parties don’t have an effective integration on management system andculture system. Reasonable evaluation of overseas M&A’s performance is an effectivemethod to promote the success rate of M&A and attain the goal. Moreover, integrationis the key for the overseas M&A. A successful M&A integration can make up for theloss of other aspects, and a failed M&A integration can destroy the success of otheraspects. According to the statistics data, the risk of integration occupies most of therisk of overseas M&A. Therefore, in this paper, the evaluation of overseas M&Aintegration’s performance can be defined as the evaluation of overseas M&A’sperformance.This paper establishes a performance evaluation system for overseas M&Aintegration using the standard method on the basis of the balanced scorecard, whichcan be divided into the performance evaluation index system and the scoring model.Overseas M&A integration performance evaluation index system assesses theintegration performance from the learning and growth level, the internal process level,the level of stakeholder and financial level four levels. Through scoring model, theperformance of integration content and overseas M&A can be evaluated on the basisof the performance evaluation index system. Overseas M&A integration performanceevaluation index system can predict which target can be achieved before the transaction. This transaction would be smooth if this target can meet enterprise’sinterest demand, if not, it would be cancelled to reduce the risk of overseas M&A.After the completion of M&A, overseas M&A integration performance evaluationindex system can determine the goal and direction to ensure that the integration can berun smoothly. The scoring model evaluates the performance of integration accordingto the target, and then overseas M&A integration performance evaluation indexsystem should be adjusted appropriately. These two parts interact with each other andmake improvement until the end of evaluation. With the development of theintegration, overseas M&A integration performance evaluation system will be in adynamic equilibrium, and the evaluation process will become more simple.