The Promotion Of M&A Capability And Performance Evaluation For Serial Cross-border M&A In China

Driving by the "going out" strategy, domestic M&A market has become increasingly active,Chinese enterprises integrate into the global economic chain through cross-border M&A. Currently,Currently, cross-border M&A of Chinese enterprises has made preliminary results, the Chineseenterprises expand business scale through cross-border mergers and acquisitions, and occupied themarket quickly, the number of M&A also growing, which has show consistency. As noted above,the M&A market in china is changing from single M&A to serial M&A, serial M&A has became anew research object which deserving some researches. However, due to the short history ofcross-border M&A in china, Some enterprises are lack of experience. therefore, how to makecross-border M&A successful and whether they can use previous experience to achieve theexpected performance has been an important issue in the academia area and business community.This paper focuses on the relationship between serial M&A and cross-border M&Aperformance, which is based on the M&A theory and organizational learning theory. The first part isthe background of this study and the purpose and the method. The second part reviews the researchof the cross-border M&A and the M&A experience. The third part present the framework based onthe M&A theory and organizational learning theory. Part IV, on the basis of Lenovo Group’scross-border M&A, analysing the role of organizational learning playing in improving theperformance of M&A. This paper use three methods to measure the performance of M&A, whichis event-study method, financial and non-financial index method to evaluate short-term performanceand long-term performance. The fifth part is the study conclusions, recommendations and prospects.The mainly study conclusions as follows:1. Serial cross-border M&A can improve the ability of mergers and acquisitions andperformance. By analyzing the case of Lenovo group ‘s serial cross-border M&A. We find that thecompany strengthen and gain knowledge in the effect of organizational learning through Serialcross-border M&A. It can develop the decision of M&A and enhance the ability of mergers andacquisitions, which can improve the performance of the enterprises.2.Acquisition targets, holding ratio, M&A payment, acquisition financing, and post-mergerintegration are key factors in the ability to enhance the acquisition in serial cross-border M&A. Thecompany continue to strengthen existing M&A knowledge and generate new knowledgeacquisition through organizational learning, so as to enhance the acquisition capability.3.It should take two aspects including short-term performance and long-term performancewhen evaluating the performance serial cross-border M&A. Where short-term performance use the event study to measure market reaction, long-term performance use financial and non-financialindicators of enterprises to measure operating results. There are many factors affecting the stockprice, If we use one way to explain research objectives, The credibility will be reduced rapidly. Weshould take a variety of research methods to evaluate the performance of the serial cross-borderM&A, which is more comprehensive.