Have The Overseas M&A Created Value?

Mergers and acquisitions, namely M&A, an important form of outside the enterprise growth strategy won of social all circles reputably. At present, with economic globalization and the new round of industrial revolution surging, the scale and influence of cross-border M&A which is an important way of mergers and acquisitions, is growing.Chinese enterprises’ overseas M&A have made some substantial achievements and encouraging progress, but it is still at an early stage of exploration, after all, overseas M&A in China started relatively late. Whether the overseas M&A can create value or not is one topic of much attention in recent years. There are some successful stories on the history of Chinese enterprises overseas mergers and acquisitions, such as Lenovo’s acquisition of IBM’ PC business. Meanwhile, there are also some unsuccessful cases, such as China SAIC’s acquisition of Ssangyong. The main reason for these unsuccessful cases is the lack of preparation in the period of pre-merger and the imperfect integration in the period of post-merger.This paper continues to discuss the hot topic that whether overseas M&A can create value or not.Through the case study of Zoomlion acquiring the Italian CIFA, it analyzes its preparatory activities, transaction structure design, etc., analysis of the most important acquisitions Zoomlion short-and long-term performance changes CIFA post-merger integration process before and after. Then it concluded: Overseas acquisitions can create value, while mergers and acquisitions in value creation is relatively difficult, but with the phase transition period to fusion, value creation is more and more optimistic. Finally, from the perspective of integration, it summarizes the successful experience and the insufficiency in the case of Zoomlion acquiring CIFA, and it also provides reference for subsequent overseas M&A.This paper is divided into five parts, namely introduction, literature review, case introduction of Zoomlion acquiring CIFA, case analysis of Zoomlion acquiring CIFA, conclusions and revelations. The main content of each chapter is as follows:The first chapter is introduction. It introduces the research background, purpose and meaning, research methods and the framework of the thesis.The second chapter is literature review. It mainly summarized previous studies on M&A performance, in particular on the integration of post-merger performance and its influencing factors, and finally it briefly reviewed these previous studies.The third chapter details the case of Zoomlion acquiring CIFAin Italy, including mergers and acquisitions background, motivation, the background of all parties involved, and how the whole negotiation process deals conducted.Chapters IV and V is the focus of the whole thesis, they analyze the Zoomlion CIFA merger case, from the value creation perspective, it assesses the short and long term performance of acquisitions; Secondly, from the perspective of merger integration, it analyzes the Zoomlion successful experience; then comparing with the case of Sany acquiring Putzmeister, it summed the problems in merger integration process; Finally, from the overall perspective, it analyzes the experience available for acquisition in the future.The chapter VI is conclusions and implications. It gives recommendations in the basis of the experience of success or failure accordingly.The main contribution of this paper is the following three points.First, the studies on overseas M&A are mostly confined to the theoretical level, there is only a small part conducting research through cases. And this article starts from a single case of Chinese outbound M&A, and makes empirical research on value creation process.Secondly, there are only a few empirical studies on M&A in the field of engineering machinery industry; most studies have focused acquisitions in the computer, electronics and other fields. This paper selected milestone event Zoomlion acquiring CIFA studying, research the long-term performance. In addition, this article builds its own detailed accounting system for long-term performance indicators studied, and also use Tobin Q Act (Tobin’s Q) analyzing the long-term market reaction to this incident, conducts performance analysis from the perspective of future value.Finally, previous studies in the field of M&A are limited to performance analysis, less specialized research relating to post-merger integration. Performance analysis on the basis of historical data has demonstrated its strong persuasive without doubt. However, post-merger integration for enhancing the overall performance of the company also occupies a pivotal position. Based on the quantitative analysis of M&A performance after the merger, adding qualitative meta-analysis, it elaborated joint efforts made in terms of integration. Unfortunately, so far, the results have failed to form integrated indicator system that can be quantified, which is one of the deficiencies of this paper.