Research On The Performance Of X-Company’s Cross-border Mergers And Acquisitions From The Perspective Of Synergies

In the context of the continuous deepening of Chinese economic reform,with the steady development of economy and the implementation of the Belt and Road Initiatives policy,more and more Chinese companies have accelerated their internationalization process,actively engaged in international capital markets,cross-border mergers and acquisitions become common.Companies can quickly enter new markets and expand their market size through cross-border mergers and acquisitions.Besides,companies also can gain access to a variety of available resources and Improve resource allocation efficiency.Therefore,cross-border mergers and acquisitions have become one of the key components of the development strategy of some Chinese companies with a global perspective.In recent years,the number of enterprises implementing cross-border mergers and acquisitions in China and the amount of transactions are confirming the high activity of Chinese enterprises in the international merger and acquisition market.However,cross-border mergers and acquisitions is a complex and huge project,moreover,mergers and acquisition targets of China are mostly the developed high-tech enterprises.It is rare for successful enterprises to realize the increase of enterprise value in high-risk and difficult reverse cross-border mergers and acquisitions.More enterprises in cross-border mergers and acquisitions have failed,and even make the development of enterprises deadlocked,harming the interests of enterprises.Whether cross-border mergers and acquisitions can achieve the company’s expected goals and promote the sustainable development of companies,and how companies should successfully carry out cross-border mergers and acquisitions is still unconfirmed,and further research is needed.Based on the theory of synergies and the systematic study of domestic and foreign literature,this paper uses case analysis to conduct an in-depth study of the case of domestic edible oil industry X company’s cross-border merger and acquisition of K,a health products industry company.The article subdivides synergy into three dimensions:business synergy,management synergy,and financial synergy,combining financial indicators with non-financial indicators for evaluating the performance of X cross-border mergers and acquisition.Financial indicators contain profitability,development ability,asset and expense management level,solvency and cash flow level such,non-financial indicators contain research and development level,organizational structure and tax avoidance level.Finally,this article summarizes the general experience and enlightenment of cross-border mergers and acquisitions based on the case of X company,and believes that Chinese companies should promote the sharing of operating resources in cross-border mergers and acquisitions,attach importance to management integration after cross-border mergers and acquisitions,and improve the ability to prevent financial risks in cross-border mergers and acquisitions,to promote the increase of enterprise value with the synergy effect of mergers and acquisitions.