Research On The Performance Of Domestic Manufacturing Enterprises Overseas M&A

Overseas M&A is one of the most effective ways to quickly acquire the core resources of overseas market,technology and brand.More and more Chinese manufacturing companies are seeking to promote competitive advantage through overseas M&A.But the failure rate of overseas mergers and acquisitions is up to 70 percent,mainly due to lack of overseas M&A experience.Since the financial crisis,Weichai Power has carried out several large-scale overseas M&A in Europe and the US,with a value of more than 3.2 billion euros.Obviously,it is in very significance to explore the overseas M&A performance and experience of Weichai Power.This paper focuses on the performance evaluation of Weichai Power overseas M&A.Firstly,based on the existing research,this paper sums up the overseas M&A related theory,performance evaluation methods and indicators.Secondly,this paper explores the basic situation of Weichai Power overseas M&A,including M&A events and M&A motivation.Thirdly,this paper evaluates the performance of weichai power overseas M&A from the three dimensions of shareholder wealth,business performance,business logic and integration by means of event research and financial index analysis.As the results,Weichai Power overseas M&A gains great success.Weichai Power optimizizes its income structure,grasps the new business growth direction,and achieves the goal of the billions of revenue,etc.Finally,the paper summarizes the experience in the process of Weichai Power overseas M&A.