An Analysis Of Financial Performance Of M & A Cases In

Sany Heavy Industry is the leading enterprise in the industry of concrete machinery manufacturing in China, while it participated in the construction of Beijing Olympic venues,Shanghai Center, Hong Kong World Financial Center and other major projects, so it makes a great contribution to the large-scale modernization of China. However, influenced by the global financial crisis in 2008, the macro-control of real estate in China and other aspects, the whole industry of concrete machinery manufacturing entered into the phase of decline, while Sany Heavy Industry entered into the bottleneck period, so the financial performance in the aspects of debt paying ability, operation ability, profit ability and development ability began to decline.Under the promotion of "Four trillion" policy in China, Sany Heavy Industry merged Putzmeister in Germany, in order to expand sales network, gain more market share, as well as promote enterprise’s financial performance.In view of domestic and foreign numerous M&A, there are many cases with failure and success. This paper takes the M&A of the leading enterprise- Sany Heavy Industry in the industry of concrete machinery manufacturing as the case study, so as to explore whether its M&A can improve the financial performance of Sany Heavy Industry. In the process of research,this paper elaborates the research background, purpose and significance at first, collates and summarizes the domestic and foreign research literature related to mergers and acquisitions,financial performance and M&A financial performance, defines the related concept, as well as introduces the research methods under this paper. Secondly, this paper learns about the basic situation of Sany Heavy Industry, studies the reasons that Sany Heavy Industry does M&A, as well as the impact of the choice of payment methods in the process of mergers and acquisitions on financial performance. Meanwhile, this paper focuses on the representation of the present situation of financial performance before or after Sany Heavy Industry’s M&A, makes calculation of the effective financial data for a total of 8 years before or after Sany Heavy Industry’s M&A with factor analysis, reveals the changes in financial performance after Sany Heavy Industry’s M&A, and finally works out that the financial performance has a large fluctuation in operation ability, profit ability and development ability a total of three aspects. In view of the above three aspects which have large fluctuation in financial performance, this papercarries out the comparison of relevant indicators which have an effect on the fluctuation of financial performance before or after Sany Heavy Industry’s M&A, discovers the issues causing the fluctuation of financial performance, analyzes the reasons, put forward the corresponding measures, so as to guarantee that Sany Heavy Industry can efficiently develop in the future.Finally, this paper sums up experience or lessons in order to provide guidance and reference to do M&A for other enterprises in the industry of concrete machinery manufacturing.