The Research On M&A Performance Of Zoomlion And Italian CIFA

Construction machinery industry is one of the important industries in our country,on behalf of our country’s industrial technology level, is a strategic equipmentindustry involved in the national large-scale modernization, has always been vigorouslysupported and fostered in our country. After years of development, construction machineryindustry has become a pillar industry of our country. But the construction machineryindustry also faces challenges at the same time, under the background ofinternationalization, engineering machinery giants are on the path of the cross-borderM&A, China’s enterprises are facing fierce international competitions. Zoomlion CompanyLimited is the typical enterprise of Hunan province and even the construction machineryindustry, merged Italian CIFA in2008. Based on this event, analyzing the M&Aperformance of Zoomlion and Italian CIFA is of great significance to the development ofthe engineering machinery enterprises in our country.This paper begins with describing the background and significance of thisresearch, reviewing domestic and foreigns’ current research, and noting the researchmethods and innovation of this paper. Then starting from the enterprise transnationalmerger and acquisition theory, expounding the efficiency theory, the market powertheory and transaction cost theory,then summarizing factors affecting theperformance of M&A in different stages,explains the M&A of Zoomlion and CIFAreasonably. Next, the environment Zoomlion faced, M&A motivation and process wereanalyzed. The focus of this article is the M&A performance of Zoomlion and CIFAanalysis, the financial analysis, Z value method and EVA analysis are used to discuss theperformance in this section， favorable and unfavorable factors impact the M&Aperformance of Zoomlion and CIFA are summarized at the same time. Finally, this paperputs forward some general advice for engineering machinery enterprises’ transnationalmergers and acquisitions in China through studying this case. Mainly includes:Government, should actively guide the development of construction machinery enterprisestransnational mergers and acquisitions through the development of relevant policies andregulations. For enterprises, first, objectively analyze the internal and external situationto make scientific cross-border M&A strategy; Second, strengthen the M&A processof risk prevention and control; Third, establish a sound accounting system; Fourth,strengthening the post-merger integration; Fifth, Adhere to technological innovation, and expand market share.