Research On M&A Strategy And Performance Of Multinational Company A Case Study Of B Company

With the deepening of economic globalization,the relationship between countries and enterprises is constantly strengthening.In order to adapt to the trend of economic globalization and the development requirements of enterprises themselves,More and more excellent enterprises at home and abroad choose to go abroad and go to the target customers to carry out business.To successfully enter the target market,there are two main ways of investment,the first is direct investment,enterprises through their own funds and technology in the target market to establish branches in order to serve customers.Due to the influence of cultural,political,economic and other factors,the effect of this method is often lagging behind.The second is often used by many multinational companies.Direct merger and acquisition of mature enterprises in the target market not only saves the complex process needed to form a new company,but also can achieve the ideal effect in a short time.Company B belongs to chemical products distribution industry which is a very dependent on customer service industry.In order to meet the needs of customers and carry out business at the same time,It needs to set up offices in different regions of the world.To meet the needs of global customers for products and services.To this end,It has never stopped the pace of mergers and acquisitions,he has more than 760 offices around the world,most of which are obtained through mergers and acquisitions,it can be seen that company B rely on M&A strategy,and it is also very good at using of M&A strategy,step by step from trading companies,to the world’s largest chemical distributors,successfully listed on the stock exchange,which is why the company B’s M&A strategy of should be analyzed.During the analysis of this thesis,I mainly use case analysis method to analyze some excellent cases and failure cases of company B in the past.Through the analysis of these cases,we find out the causes of successful and failed mergers and acquisitions,and summarize them.This thesis also analyzes the performance of company B in the past five years.In the performance analysis,it mainly adopts the widely accepted EVA and EBITDA analysis method,and studies the overall operating performance of company B by calculating the EVA.Then compare the EBITDA to analyze whether the company’s continuous mergers and acquisitions really bring value to the enterprise.Finally,based on our analysis of M&A strategy and performance of company B,this thesis summarizes the overall strategy of company B and summarizes the advantages and disadvantages of M&A strategy.Hope that the research on company B can play a reference role for some domestic enterprises with the same experience or on the eve of going abroad.