Case Study On Performance Evaluation Of Geely’s Acquisition Of Volvo

M & A is an important form of enterprise expansion,which has been highly praised by enterprises in recent years.More and more companies choose to grow in this way,but also many companies respond to the call of the country,adopting "go out" strategy,which means focusing overseas markets and is faced with the opportunities and challenges from the international community.In August 2010,Geely’s acquisition of Volvo was an overseas acquisition that shocked the industry.It was also a classic case study of China’s overseas mergers and acquisitions.This paper is based on detailed analysis to explore the business opportunities,challenges and countermeasures in the overseas mergers and acquisitions.On this basis of analysis it sums up some further prospects in M&A,which may bring more practical significance of research in this field for Chinese enterprises.This paper introduces the research status and theory at home and abroad.Through the Geely’s acquisition,it analyzes its preparatory activities,using the event study method and principal component analysis method to evaluate the merger before and after short and long-term performance changes,and a brief analysis of the post merger integration process is considered.It can be concluded that the acquisition of Geely Volvo enhances the enterprise’s own value,but also enhances the corporate brand image,and promotes the development and operation of Volvo so as to achieve a win-win situation for both sides.Finally,the entire event from Geely’s acquisition of Volvo’s analysis of successful experience,draws some inspirations: first,the success of Geely is supported by the economic background and the state government,as well as the help of Swiss Labor Union;the second part is in the management of Volvo operations respecting Volvo’s corporate culture,retaining the original management team;In the end,Geely and Volvo’s cooperation in technology research has promoted the brand image of Geely Group to rank among the brand car.The innovation of this paper is the combination of principal component analysis and financial indicators in the long-term performance evaluation of Geely Group,and makes the performance evaluation more reasonable and comparable with the industry samples.The inadequacy of this article is that due to data reasons,we can not join the performance evaluation of Volvo in mergers and acquisitions.