Case Analysis Of The Influence Of M & A On The Financial Performance Of Enterprises

Our country automobile industry compared with western countries started late, although in global information technology and the increasingly frequent exchanges, China’s automobile industry development quickly and to the increasing demand for the market, but automotive production technology still does not meet the first-class level in the world, especially in China’s own brand cars is not entered the world brand. Especially since China’s accession to the WTO, the automobile industry competition is becoming increasingly fierce. Therefore, automobile production enterprises in order to enhance the market competitiveness and survival ability, create independent brand of automobile industry in our country, more and more enterprises take the form of mergers and acquisitions, increase their own strength, expand the scale of production, improve the financial performance. Such as 2010 Geely to $1.8 billion acquisition of a wholly-owned Volvo car case, Geely take a large amount of manpower, material and financial resources acquisition of Volvo, but whether it can be to drive the development of Geely Automobile, open up a wider market for Geely, especially how the financial performance? This is also the main topic of this paper.This paper is divided into five parts, the first part introduces the research background, research significance and the thesis, a comprehensive overview of the domestic and foreign research on the financial performance of the enterprise mergers and acquisitions; the second part mainly introduces the related theory of financial performance theory, including the basic concept, mode, way of mergers and acquisitions study on the index system, and the main impact of mergers and acquisitions on corporate financial performance; the third part introduces the main process of enterprise merger and acquisition; the fourth part mainly through changes in financial performance and income comparison Geely before and after mergers and acquisitions, to analyze the impact of mergers and acquisitions of Geely Group’s financial performance; the fifth part of the performance analysis results, puts forward some beneficial to enterprise merger and acquisition after the promotion of financial performance improvement suggestions.This paper adopts the theory and method of combining the, first of all to the domestic and foreign on merger and acquisition of enterprises financial performance in the literature were reorganizing and on financial performance and related theory were introduced, in the form of specific case were explained, which compiled a lot of Geely acquisition of Volvo related data and financial indicators, through the use of single index analysis, DuPont analysis, on the financial performance of in-depth analysis.