| In the era of global economic integration,with the continuous enhancement of China’s overall strength and the continuous expansion of Chinese enterprises,cross-border mergers and acquisitions have become the main way for enterprises to obtain strategic resources and achieve scale expansion.However,adverse factors such as cultural and institutional differences,financial risks and disadvantages of the home country in cross-border M&A are easy to have an adverse impact on the performance of Chinese enterprises in M&A.Therefore,whether to choose cross-border M&A and how to catch up in the follow-up development of M&A have become the remaining problems that enterprises need to solve.This paper takes Geely Auto as the research object and studies its financial performance evaluation before and after the merger.First of all,combined with the actual situation of both sides of the merger,based on the theoretical basis of resource acquisition,synergy and economies of scale,the merger motivation and financial status quo of Geely are deeply analyzed.After analyzing the sales performance and market performance after the merger based on the event study method,it is found that Geely presents a good market development prospect after the merger of Daimler.Thirdly,the financial performance evaluation system was constructed based on the 2012-2021 financial data of Geely Automobile,and the factor analysis method was used to calculate the factor score and rank for horizontal analysis.Then the longitudinal evaluation of the financial performance was conducted according to the four financial indicators before and after the merger of Geely Automobile.It was found that the financial situation of Geely Automobile had changed significantly after the cross-border merger.Generally speaking,the trend of financial performance after merger is better.Finally,according to the analysis content,corresponding suggestions are put forward for Geely in the follow-up operation process,and relevant enlightenment is summarized for other enterprises to carry out overseas M&A,including strengthening brand construction and management in order to seize the initiative in M&A,preventing multiple operation and financial risks in the M&A process,and paying attention to the integration of resources after M&A. |
