A Case Study Of Eurocrane’S Cross-Border Acquisition Of Voithcrane

At present,China’s economy is facing the transition from "quantity to quality",from high-speed development to high-quality development.Relying on the "One Belt And One Road" platform,it is an important strategy to carry out the "going out" strategy to achieve economic transformation.With the rapid development of "One Belt and One Road",the demand for advanced manufacturing and transportation is increasing.Grasping the opportunity of the times,developing overseas business and promoting internationalization are the major challenges and opportunities faced by Chinese manufacturing enterprises.Cross-border M＆A is a significant way for enterprises to rapidly improve their core competitiveness.However,there are two sides to merger and acquisition.The risks of merger and acquisition may take a toll after merger and acquisition.The synergistic effect in merger and acquisition and the enhancement of core competitiveness can provide competitive advantages for enterprises.Aiming at the cross-border M＆A of advanced manufacturing industry in "One Belt and One Road",this paper selects Eurocrane’s cross-border M＆A as a representative case.By analyzing the motivation,risk and the performance of Eurocrane,this paper not only provides valuable experience for other manufacturing enterprises when they experience cross-border merger and acquisition but also demonstrates the relevant merger and acquisition theories.By studying the case of Eurocrane’s cross-border merger and acquisition,this paper first analyzes the motivations before the merger,the risks during the merger and the performance after the merger,so as to judge the overall market dividends and existing deficiencies of cross-border merger and acquisition.Its unique industry acuity and market judgment can provide inspiration for other manufacturing enterprises to carry out cross-border M＆A,and the problems faced in current M＆A can also provide reference and thinking for manufacturing enterprises.As for the analysis of merger motivation,this paper study the four aspects: "One Belt And One Road" policy dividend,breaking trade barriers,synergetic effect and acquiring advanced technology to improve the core competitiveness of enterprises.On the analysis of the risks of merger and acquisition,this paper carries out from three aspects: goodwill risk,exchange rate risk and integration risk.As for the analysis of M＆A performance,this paper firstly analyzes the short-term M＆A performance by event analysis method.Secondly,the long-term M＆A performance of enterprises is analyzed.The M＆A performance based on financial indicators is studied through descriptive analysis,the industry performance is compared through factor analysis,and the impact of M＆A on enterprise performance is comprehensively expounded through DEA method.From the research results,the merger is a success.As a leading professional manufacturer and service provider of crane products in China,Eurocrane has acquired a long history of high value-added brand and advanced technology through the cross-border acquisition of Voithcrane.Learning from the acquisition,namely in the international horizontal mergers and acquisitions,companies must first clear their own strategic objectives.In the process of M＆A,enterprises should control the whole process of mergers and acquisitions to reduce the program’s risk of loss and maximize profit potential.The enterprise should still pay attention to the integration after M＆A so as to ensure that enterprises operating conditions.