Study On Target Selection And Performance Evaluation Of Logistics Enterprise M&A

As the accelerating process of global economic integration and China’s accession to the WTO, the logistics market gradually open to foreign investment. Facing the great demands, many foreign logistics enterprises began to enter and seize Chinese market. In order to succeed in the fierce competition, Chinese logistics enterprises can achieve further enhancement through integration and acquisition.However, many factors hindered the process of integration and acquisition, such as the unclear development strategy of companies, the failure in accuracy assessment on target enterprise and the difficulty in effective integration between companies. As a reason of that, the failure in integration and acquisition may cause great loss in enterprise development and social resources. How to solve this problem will directly affect the survival and development of the whole logistics industry in our country.Firstly the article describes the theory and characteristics of the integration and acquisition as the basis of further analysis. The second step is to analysis the environment and development trend of Chinese logistics enterprises in combination with the experience of UPS. After that we build common logistics M&A selection model on target enterprises according to level analysis method and companies strategic development model. Then we set valuation assessment and logistics enterprises performance evaluation model through comparative analysis on acquisitions valuation and performance evaluation. Finally, we do a series of analysis on the Grand China Logistics M&A case using discounted cash flow model and fuzzy comprehensive evaluation model, such as the analysis on choosing reasonable target enterprise, the valuation assessment and economy feasibility on M&A process, and the performance evaluation after acquisition,The article intends to provide reasonable proposal and solutions to the main problems on Chinese logistics enterprises in the M&A process through the above analysis. Then we try to build a overall process which can be applied to common logistics enterprises in China. We hope to achieve strategic development of M&A process in guidance and reference to M&A process.