Research On Performance Of Cross-border M&A Under International Strategy Background

Mergers and acquisitions are important means of corporate expansion and have been highly regarded by the industry for a long time.In recent years,many enterprises have gone abroad to face the opportunities and challenges of economic globalization through cross-border M&A based on the “going out” strategy put forward by China government.In August 2010,Geely's acquisition of Volvo shocked the industry.The merger has been nearly 10 years since its inception,and it is also recognized as one of the most classical and successful case of overseas M&A in China.Therefore,researching its performance and summarizing its successful experience are of great significance for the other Chinese enterprises to implement cross-border M&A in the future.The thesis takes Geely's acquisition of Volvo as the research object.On the basis of extensive review of relevant literature at home and abroad,firstly it combs the related theories of M&A motivation and M&A performance evaluation methods.Then,based on the perspective of four-dimensional synergy,the business synergy,management synergy,financial synergy and technological innovation synergy effect are analyzed in detail.At the same time,based on the perspective of value creation,EVA and Tobin Q are used to evaluate the company value after the merger.Finally,the main causes of M&A's success are analyzed based on the different perspective of performance evaluation.In order to eliminate the influence of other factors on performance evaluation,the thesis compare Geely with several equirotal car companies without participating in cross-border M&A in Chinese auto industry.The results show that Geely has achieved good operating synergy,management synergy,financial synergy and technological innovation synergy after the acquisition of Volvo,which has a significant effect on the enhancement of corporate value and shows a growing trend.Further analysis found that the positive effects of acquisition were only apparent after 2016,mainly because that there was a merger period of roughly 3-5 years before the rapid growth.And the effect of M&A is mainly due to whether the merger integration is successful but not the merger event itself.The innovation point of this thesis is that it not only analyzes the performance based on the four-dimensional synergy effect,but also use EVA and Tobin Q to analyze the performance from the perspective of value creation.The research design is original and the conclusion can be more reliable.Meanwhile,the analysis and evaluation of M&A performance pays more attention to the long-term effects of post-merger integration,which makes up for the shortcomings of traditional M&A performance analysis and evaluation,and enriches the literature on M&A case performance analysis.