| Since the 21 st century,China’s economy achieved rapid development.At the same time,China’s automobile industry enter the era of rapid development.Under the fierce competitions,mergers and acquisitions have become an important way of achieving rapid development through eliminating competitors.Many Chinese companies focused their attention to the global market,so a number of multinational mergers in recent years gradually increased.Geely’s acquisition of Volvo,as a immediate merger and acquisition sample,has received extensive attention,but attitude toward it’s success has not yet been agreed.This article selects Geely’s acquisition of Volvo as a case study,expected by performance evaluation to draw relevant conclusions accordingly.Based on the background of multinational merger,I learned many literature and carded them from two aspects of the influence factors and evaluation method of performance of mergers and acquisitions.Then I learned relevant theory of mergers and acquisitions,including the scale economy theory,the synergy theory,market power and under valuation.Having understood the literature and theory,I learned both Geely and Volvo,also the m&a process,afterwords analyzed the financial performance(including financial ratio indexes and EVA)and non-financial performance(including market share,technology research and development capability,the cultural integration).Though the above-mentioned describe,I obtained following conclusions: Geely’s acquisition of Volvo is successful at present,but the momentum gradually decline,so long-term performance needs further investigation;Integration plays an important part in enterprise acquisition,especially the cultural aspects;From a strategic point of view,Geely’s acquisition of Volvo is one of the most effective strategies,and laid a solid foundation for it to implement internationalization strategy.At last,I put forward suggestions to provide experience for Geely and other enterprises. |
