Performance Analysis On Geely Buying Volvo

Following the trend of transnational merger around the world, Chinese corporationshave been undertaking the exploration of overseas merger since1980s. Among themsome representative companies like CITIC Group, Sino hem Group, Shougang Groupand China Resources have developed into large-sized transnational corporations coveringbusinesses of diverse industries and countries. With the enhancement of China’s openingdegree to the outside world and Chinese corporations’ developmental strength, more andmore domestic corporations set out to take an global view and march forward intoforeign market. Thus they speed up their pace of internationalization and exploit newstrategic developmental space through various ways such as transnational business anddirect overseas investment.However, China National Offshore Oil Corporation (CNOOC)’s abortion to mergeUnocal Corporation at a high price reveals the predicament that domestic corporationshave to face under the appearing brilliant forecast. In this context, this thesis attempts toselect Geely as example of case and analyzes its motivation and performance so as tohave an analytic understanding of Chinese corporations’ agent, risk and performance inmerger overseas. In the end, some problems existing in the process are pointed out forother corporations to draw some lessons from.This thesis adopts methods like du pont analysis, monomial indicator analysis andother macro factors to analyze the performance of the example of case. To make up thedefect of monomial indicator, this thesis attempts to build a fiscal indicator system to geta comprehensive acquaintance of corporation’s performance after merger and evaluatethe listed company with a couple of fiscal indicators. In order to assure the scientific andcomprehensiveness of this thesis, the focus is laid upon the corporation’s solvency,operation ability and profitability.The paper is divided into five parts, the first part of the research background andsignificance overview of domestic and international M&A Performance theory, thesiswriting content, structure. The second part of the review Geely acquisition of Volvocase, including Geely and Volvo background, M&A, M&Motivation. The third part,Geely acquisition of Volvo Financial Indicators Analysis and Evaluation, divided intoindividual financial indicators and financial indicators. The one-way financial indicators analysis and evaluation of profitability, solvency, operation ability, the ability to grow.The consolidated financial indicators by constructing DuPont analysis system evaluation.The fourth part of the acquisition of Volvo Geely Analysis and Evaluation ofnon-financial indicators. Selected three main non-financial indicators, namely, the futuredevelopment, technological innovation, market share. The fifth part, conclusions andrecommendations. Concluded that the acquisition of Geely value for enterprises tocontinuously improve business performance, but also pay attention to the corporate debtpressure. Overseas mergers and acquisitions, Geely core technology, to improve thecompany’s position in the industry, to some extent, improve the competitiveness of thecompany.