Research On The Impact Of Cross-Border M&A On The Internationalization And Financial Performance Of Sany Heavy Industry Co

The Report of the 19 th CPC National Congress pointed out that we should "pay equal attention to both bringing in and going out".Facing the current complex and volatile international economic situation,General Secretary Xi proposed that “it is necessary to build a new development pattern in which domestic and international double cycles are the mainstay and the mutual promotion of domestic and international cycles.” This paper aims to study the case of Sany Heavy Industry’s cross-border M&A Putzmeister,point out the positive role of cross-border M&A in improving its internationalization level and financial performance,and suggest that domestic construction machinery enterprises should focus on cross-border M&A to realize the rapid improvement of internationalization level,and provide reference basis for the formulation of government industrial policies and enterprises’ overseas expansion strategies,which has certain practical guiding significance.In this context,this thesis combs and summarizes the literature on international mergers and acquisitions,comprehensively uses the methods of literature research and case analysis,Analyzing the case of Sany Heavy Industry’s acquisition of Putzmeister in Germany,and based on the detailed arrangement of Sany Heavy Industry and Putzmeister and the impact process of mergers and acquisitions,the internationalization degree and financial performance evaluation indicators are established based on the index construction principles of adaptability,objectivity,traceability,availability,and comprehensiveness,combined with the internationalization degree indicators of Sany Heavy Industry from2010 to 2020(international revenue ratio),profitability indicators,operating capacity indicators,short-term solvency indicators,long-term solvency index,growth ability indexand other data to study the relationship between cross-border mergers and acquisitions and internationalization degree and financial performance.The study provides a reference basis for enterprises’ overseas expansion strategies,which has a certain degree of theoretical value and practical significance.The main conclusions are as follows: After acquiring Putzmeister,Sany Heavy Industry has owned Putzmeister’s world leading technology and high-end brand,realized the complementarity of domestic and foreign markets and improved the internationalization level.At the same time,Sany Heavy Industry can improve the core competitiveness of enterprises,accelerate technological innovation,reduce R&D costs,optimize resource allocation and reintegrate the industrial chain by improving the global marketing network to affect financial performance.In terms of the degree of internationalization,Sany Heavy Industry’s merger and acquisition of Putzmeister has directly and significantly improved the degree of internationalization and provided assistance for the company to explore overseas markets.The layout of internationalization effectively ensures that when the domestic market is depressed,the international market can partially make up for the decline of domestic market sales revenue and help the enterprise enhance the ability of countercyclical adjustment,successfully passed the "cold winter of the industry".In terms of financial performance,Sany’s mergers and acquisitions’ behavior has not significantly improved the financial performance in the short term.The profitability,operation ability and growth ability of the enterprise show a downward trend in the short term,but it has little impact on the solvency.As cross-border mergers and acquisitions consumes a lot of human,material and financial resources of Sany Heavy Industry,the high input cost and high degree of international operation are a test of the enterprise’s business ability.From the data,Sany Heavy Industry obviously failed to deal with the post mergers and acquisitions matters.Although mergers and acquisitions expanded the total scale,it did not produce significant economies of scale.In the long run,after continuous running in and improvement,the problems of accounts receivable management and slow-moving inventory have been gradually solved.While the enterprise’s operating capacity has been continuously improved,its profitability,solvency and growth capacity have also been significantly improved.Finally,based on the research conclusion of this thesis,it is proposed that the mergers and acquisitions of China’s construction machinery industry should carefully select the target enterprises based on the enterprise development strategy,prevent the decline of operation capacity and improve the integration capacity after mergers and acquisitions,pay attention to industry cycle,improve risk control ability and other policy suggestions.