Performance Evaluation Of Corporate M&A Based On Balanced Scorecard

With the continuous development of the market economy,enterprises,as the main players of the market economy,are facing increasingly fierce competition.Only by improving their own capabilities and advantages can they have more competitiveness and survive better in the market.One of the means by which companies develop themselves is to conduct mergers and acquisitions.With the increasing number of mergers and acquisitions,all sectors of society are increasingly focusing on how to judge and evaluate the extent to which mergers and acquisitions of new companies will be completed after mergers and acquisitions,how to judge the profitability of mergers and acquisitions,and how to compare the results of mergers and acquisitions with expectations before acquisitions..In view of this situation,many scholars began to study how to do a full-scale performance evaluation of corporate mergers and acquisitions.This article takes Lenovo's merger and acquisition of Motorola as an example,combines Balanced Scorecard(BSC)multi-angle and multi-index evaluation ideas with M&A performance theory,and builds coverage based on the research of M&A performance with simple financial indicators.Financial,Financial,Customer,Internal Business Processes,and Learning and Growth are four dimensions of M&A performance indicators.Compared with the traditional performance evaluation method,the Balanced Scorecard not only chases the financial evaluation,but also pays attention to the long-term development of the company.The evaluation perspective covers many aspects related to the company's profit and development.In the areas of finance,customers,internal processes,learning growth,etc.,the company's M&A performance is fully evaluated,and the overall performance of the M&A performance is understood from an overall perspective.Through analysis,it was found that although Lenovo Group expanded its overseas market after M&A,its overall M&A performance was unsatisfactory.The brand effect,market share,and other indicators all showed a downward trend,and net profit was negative.This is mainly due to the pre-merger goal planning,and the imperfect integration of enterprises after mergers and acquisitions.As a result,we learned from Lenovo's acquisition of Motorola's case that comprehensive planning,target selection,and diversification of mergers and acquisitions should be done well before mergers and acquisitions.Ways and focus on mergers and acquisitions follow-up integration issues.