Overseas M&A Performance Analysis Based On Balanced Scorecard

Overseas mergers and acquisitions(hereinafter referred to as “M&A”)refers to the purchase of most of the shares and even all the assets of one company by another company through certain payment means so as to acquire the control right of the former and meet the strategic purpose of the latter.As China continues to develop with increasingly higher economic development level,larger economic scale and better overall national strength,China has frequently participated in the international market and arena.Chinese enterprises have greatly accelerated their pace of overseas expansion in the world and Chinese enterprises' overseas M&A have increased year by year.The M&A trend has constantly aroused strong concern of professional from academic circle and business world.This paper will combine the multi-index and multi-perspective evaluation concept of balanced scorecard and overseas M&A performance theories.Moreover,based on these M&A performance theories,this paper also constructs a M&A performance indicator analysis system covering finance dimension,customer dimension,internal business processes dimension and learning and growth dimension through analyzing M&A performance with single financial indicator.In addition,through case analysis of Shuanghui overseas M&A of SFD,this paper adopts balanced scorecard theory to assess the business performance of this M&A in the financial,customer,internal business processes and learning & growth dimensions,so as to provide reference and guidance for other enterprises in overseas M&A.This paper contains five parts,including introduction,theory summary,case introduction,and performance analysis and conclusion implications.In the first part,this paper discusses the research background and significance in details,then introduces the research status of overseas M&A and balanced scorecard home and abroad,and sets forth the main research methods and design,as well as the basic research framework.In the end,this paper sums up the major ideas in this part.The second part describes the basic theories of overseas M&A and balanced scorecard through providing some basic concepts of overseas M&A and M&A performance and listing different analytical methods of M&A performance in details.Then it introduces the four dimensions of balanced scorecard and the balanced relation among them in details and analyzes the advantages of applying balanced scorecard in M&A performance analysis.In the end,it summarizes the three theoretical bases of overseas M&A performance.The third part is mainly the detailed analysis of Shuanghui overseas M&A of SFD,including introduction to basis situations of both parties of the M&A,detailed process of the case and the features of this overseas M&A.The fourth part is about case analysis.In this part,the paper analyzes the M&A performance from four dimensions of this balanced scorecard,including internal business processes,financial,learning and growth and customer dimensions and comes to the conclusion that this overseas M&A has promoted the business performance growth in Shuanghui Group,expanded market share,produced synergy effect and improved its enterprise competitiveness.The fifth part is about the conclusion of Shuanghui overseas M&A of SFD and implications and suggestions for enterprises to improve their overseas M&A performance.This case takes place not long ago,so it is referable in this research.This paper analyzes corporate M&A performance from a new perspective balanced scorecard and conducts a thorough research on the application of balanced scorecard indicators to the analysis of overseas M&A performance through construction of basic analysis indicator system and in combination with famous case.