| With the increasing comprehensive national power of China,"going global" has become an important development direction for Chinese enterprises.China launched the "One Belt,One Road" initiative in 2013,which has increased support for credit,taxation and other aspects at the macro level,creating a good policy environment for "going global" and creating excellent opportunities for Chinese enterprises to grow and develop.By investing in countries along the "Belt and Road",companies can expand their business scope,not only to increase their market share,but also to gain access to high-quality resources and excellent technology from overseas companies,thus enhancing their influence on domestic and international markets.Cross-border M&A can help companies to achieve a global presence and enhance their international competitiveness.Compared to joint ventures and other forms of investment,cross-border M&A is the most effective in terms of integrating resources.Taking cross-border M&A of listed companies in the automotive industry as the research object,this paper analyse the effects of M&A and explore the countermeasures to improve the performance of M&A on this basis,which has an important inspirational role for China’s automotive industry to carry out cross-border M&A.This paper takes Geely’s cross-border M&A of Proton as the object of study to examine Geely’s M&A performance.Firstly,a detailed description of the basic situation of Geely Group and Proton,the motivation of M&A,and the whole process of M&A are presented.Secondly,the paper selects sample companies to empirically test the impact of M&A on performance and concludes that M&A behaviour is closely related to corporate performance and can have a positive effect on the financial performance of the acquirer,thus constructing an M&A performance evaluation model based on the balanced scorecard,hierarchical analysis and efficacy coefficient method.Thirdly,the performance evaluation model is applied specifically to calculate Geely’s overall performance score and analyses the effects of the M&A.The analysis revealed that Geely had gained overseas market share,broadened its sales channels and sales scope through the cross-border M&A,and created industrial synergies by complementing each other’s strengths in business areas,despite a decline in profitability and short-term solvency after the acquisition of Proton.Geely’s operating capacity and long-term debt servicing capacity have also improved.Finally,based on the analysis and results,recommendations are made to improve Geely’s M&A performance.The insights from Geely’s M&A of Proton are that the M&A targets should be consistent with corporate development strategies,the correct payment method should be chosen during the M&A,the M&A risk prevention should be strengthened,and the M&A integration should be enhanced after the M&A.This paper analyses the changes in Geely’s performance before and after its M&A,proposes corresponding countermeasures to improve Geely’s M&A performance,and summarises the inspiration brought by Geely’s M&A of Proton to other enterprises,in the hope that it can provide guidance and reference for later generations to follow the "One Belt,One Road" initiative to "go global" and improve the chances of successful M&A. |
