Research On Target Selection Of Chinese Auto Companies Overseas M&A

A "blowout" type of development has appeared in China's auto industry since2000. The automobile enterprises' scale has been constantly expanding. Well-funded Chinese automobile enterprises turn to the overseas market which is much wider. Chinese automobile enterprises export overseas directly and set up overseas plants.At the same time, Chinese automobile enterprises start trying to merger overseas well-known automobile enterprises, which in order to achieve business expansion and brand promotion. Especially in2009, when the developed countries were still struggling in the economic crisis, Chinese automobile enterprises found the opportunities of buy the dips abroad. Overseas mergers and acquisitions emerge in an endless stream.Such as BAIC's acquisition of Saab, Tengzhong's acquisition of Hummer, Geely's acquisition of Volvo...Many of M&A news came out and then confirmed one by one. This thesis discusses the problem of Chinese automobile enterprises' oversea merger and acquisition target selection under such situation.Many factors lead to the wave of Chinese auto companies overseas mergers and acquisitions such as automobile enterprises itself seeking to expand, the Chinese Government's promotion and support, the financial crisis provides good M&A opportunities. The thesis discusses the following aspects against our country automobile enterprises overseas mergers and acquisitions.(1) The thesis lists the development process of China's auto companies overseas mergers and acquisitions.And summarize Chinese enterprises overseas mergers and acquisitions's characteristics:The merger and acquisition scale has been expanding constantly; the state-owned enterprises and private enterprises both are main conductor of mergers and acquisitions; Automobile enterprises transnational mergers and acquisitions area distribution; the content of acquisition is increasingly various; M&A target companies are the companies with unsatisfied managing results.(2) Chinese automobile enterprises overseas mergers and acquisitions have two type of reasons. The external reasons are the following aspects:the stimulation of financial crisis and the debt crisis; the impact of RMB appreciation; the national policy's promotion and support. The internal motivation is the following aspects: enterprises's pursuit of their own development and growth; enterprises want to improve the technology and promote brands.(3) This thesis has analyzed the current Chinese auto enterprises' oversea M&A risks from macroscopical and enterprise level. Macro risk primarily refers to the political risk, social risk, legal risk, etc.; Enterprise risk includes the price risk of the target company, the risk of capital chain, financial the risk of anti-takeover risks, integration risks.(4) This thesis constructs the evaluation index system of the target enterprise from the quantitative and qualitative angle. And Target enterprise evaluation index system includes four aspects: Target enterprise's running status; Products of the potential market prospect; corporate culture integration and coordination effect; the potential of technical progress. This thesis,also used fuzzy comprehensive evaluation method, to quantify some qualitative indexes, which in order to get a quantitative evaluation results of the target company. In this way provide M&A subject with more convenience when choosing the targeted enterprise thus to make Target selection more effective and scientific.(5) At last, this thesis analyzes problems which the current automobile enterprises exposed in overseas merger and acquisition target selection from both government aspect and enterprise aspect and gives corresponding suggestions.