The Research Of Performance Of Cross-border M&a Based On The Case Of Sany And Putzmeister

M&A can improve business efficiency and quickly achieve corporate goals by acquiring external resources,.In recent years,China has proposed the "Belt and Road" development strategy and the "Made in China 2025" development goal to encourage enterprises to go abroad.Under the guidance of this country’s strategy,mechanical engineering enterprises have actively responded to national calls and accelerated the pace of overseas expansion through M&A.In January 2012,Sany announced the acquisition of Putzmeister,a well-known German mechanical engineering company with the largest international market share at the time.This caused a huge sensation in the world’s machinery manufacturing industry at that time,and it was generally believed that this would change the world’s machinery manufacturing Industry pattern.Through this merger and acquisition,SANY’s sales revenue in foreign markets has increased year after year.M&A has accelerated its internationalization,strengthened its brand advantage,and its products have been recognized by foreign markets.This article selects the case of Sany Heavy Industry’s M&A of Putzmeister,studies the long-term and shortterm performance of M&A,and analyzes and evaluates the performance to see if the merger has achieved the company’s expected goals.Based on the changes in other indicators,it analyzes the reasons for the change in performance,the advantages and disadvantages in the post-merger integration process,and provides experiences and lessons for similar companies that conduct overseas mergers and acquisitions in the future.This article first analyzes the causes of the M&A.The results show that the cumulative excess income after the M&A has continued to increase,and the shortterm performance has improved.Then,the company’s financial indicators from 2011 to 2018 were selected.By subtracting the industry average from these financial indicators of Sany Heavy Industry,the impact of the industry cycle was eliminated.The long-term performance was qualitatively evaluated.And use the factor analysis method to carry out a longitudinal analysis of various capabilities after mergers and acquisitions to obtain the final scores of each capability over the years,observe the change trend of the score,and compare with the previous qualitative evaluation.It was found that the short-term debt repayment ability increased after the M&A,which has remained basically stable since then,and the long-term debt repayment ability has decreased first,then recovered,and exceeded the level before the merger.In addition,the M&A also adversely affected the operation and profitability,and then analyzed the reasons for the decline in operation and profitability,such as the increase in the proportion of corporate expenses and sales revenue during the year after the merger.In summary,this article believes that although the solvency of Sany Heavy Industry has been enhanced after the M&A,its operating capacity and profitability have declined,and it has been lower than the industry average for a long time,which is very worthy of vigilance.Therefore,combined with the analysis of the case,this article suggests that we should pay attention to the choice of merger and acquisition timing before mergers and acquisitions,pay attention to the improvement of corporate management efficiency,strengthen the control of period expenses,etc.,and hope to provide some similar enterprises with some experience.