A Research On Financial Performance Of Cross-border Mergers And Acquisitions

The period of post financial crisis and the transformation of economic development provides an opportunity for Chinese enterprises to actively invest abroad. Then Chinese enterprises can achieve technology upgrades, rational allocation of resources, management experience input, expanding financing channels and avoid anti-dumping barriers and other benefits through cross-border mergers and acquisitions.In current years, a growing number of private enterprises has become a highly market sensitive and strong-cost-control large enterprise groups which have an ability to conduct cross-border mergers and acquisitions in China. Especially after the 2008 financial crisis, in China, there has been not only a rapid growth of cross-border mergers and acquisitions in the number, but also the size.Today, the number of cross-border mergers and acquisitions of private enterprises has accounted for half of our country. In recent years, China’s private enterprises have gradually increased their position in the "going out" strategy, which has become a new bright spot of cross-border mergers and acquisitions and promoted the core competitiveness and economic benefits to some companies. Through mergers and acquisitions activity, more and more companies obtained advanced technology, management experience and ideas in developed countries; some other companies gained rare strategic resources or expand international markets; of course, there are also some mergers and acquisitions failed.In this market environment, some people think that Chinese enterprises can not cope with the integration risks of the merger which is therefore not conducive to the development of China’s enterprises. There are also some people suggested that cross-border M & A is a necessary means to the rapid development of enterprises and competitiveness. So this article analyzes the impact of the acquisition to the enterprise from financial performance.By motivation and performance analysis of the successful acquisition of Putzmeister to the Sany in just 33 days in 2012 which caused a sensation in both Germany and China, the article tried to evaluate whether the merger achieved the desired performance and identify some problems which can be an experience and reference for other enterprises.For the successful acquisition deal is just apparent, but maybe not for its acquisition motivation, this article chose a decade financial indicators before and after the acquisition of the Sany to conduct a comparative analysis and then revealed the impact of the acquisition.In this article, firstly, we objectively described the background and the process of merger acquisitions and make a concrete analysis about the motivation and the post-merger performance.Then according to the financial statements of Sany, by using financial indicators, we focused on solvency, operating capacity, profitability and other performance indicators for three years before and after the merger. Meanwhile, the possible risks of the merger were evaluated and some corresponding recommendations or inspiration were also proposed.