Case Study On Financial Performance Of Lenovo’s M&A Of Motorola Mobility

Mergers and acquisitions is a strategic action to meet the needs of the development of enterprises, further expand the scale of production and extend the industrial chain or occupy the market share with their own money in order to get management or control of target enterprise. These years, more and more domestic enterprises join to the M&A activity. M&A case number increases sharply year by year. Lenovo launched a series of frequent M&A activities since the year of 2004.In 2004, Lenovo merged IBM global PC business. In January 2014, Lenovo cooperated with NEC to establish NEC Lenovo Japan Group. In June 2014, Lenovo merged Medion from Gerd Brachmann (German).In September 2011, Lenovo cooperated with Compal Electronics to establish a new cooperative enterprise. In August 2012,Lenovo worked with EMC (American) to set up a new branch. In September 2012, Lenovo merged Digibras Participacoes SA (CCE, Brazilian) and Stoneware (American).In 2014 Lenovo merged IBM X86 department and Motorola Mobility. There are both pains and gains on the way of M&A for Lenovo, especially the M&A activity of IBM PC. This action give Lenovo the chance to get into the global market. On the contrary, Lenovo suffered several years of loss as a result. Now Lenovo try to expand overseas mobile phone market so as to promote financial performance by taking over Motorola mobility.It has been two years since Lenovo announced their decision of M&A. This article will start from financial performance research to study the case, find out the problems of Lenovo during the M&A of Motorola mobility, and analysis the reasons, then puts forward some suggestions based on the analysis data, hoping that the viewpoints can give some reference significance for the future decision-making process to the enterprise, as well as other enterprises.