Analysis Of Geely’s Acquisition Of Volvo Cars Performance

Now, the tide of economic globalization is gradually spread in China, in order to cope with increased competitive pressure resulting, domestic enterprises had to choose overseas mergers and acquisitions to accelerate business growth, to survive. According to statistics, China has become one of Asia’s and the world’s most active areas of M & A activity. Therefore, performance analysis of enterprise after the merger has become a direct factor evaluation of the success or failure of a merger. GEELY acquisition of Volvo is a typical "small is big" and the success of overseas M & A cases, a vibrant, high-speed development of the young company GEELY Group acquired the historic mature companies Volvo cars, which at the time caused no small sensation. Successful acquisition is a good step forward GEELY and Volvo, and more importantly, how to achieve the promotion after the merger and integration of the cultural industry, is the key to ensuring the success of a real merger.Complete this pile overseas acquisition of domestic enterprises in China opened the door to overseas acquisitions, more and more domestic companies have chosen expand through overseas mergers and acquisitions in overseas markets, increase market share, in order to accelerate their business growth rate. GEELY and Volvo’s overseas M & A activity is also based on this purpose. GEELY acquisition of Volvo after completing the work, in addition to Volvo’s marketing efforts continue to do in the global market, but also the hope of sustenance Volvo revival in the Chinese market, where one reason is that the use of China’s low-cost labor advantage, improve Volvo cost; and more important reason is that China’s auto market by means of the enormous capacity to increase sales of Volvo cars, and ultimately GEELY Group’s own development goals.In this paper, GEELY acquisition of Volvo Car event, using a combination of theory and practice, a combination of qualitative and quantitative analysis method, comparative GEELY Group companies before and after the changes in the value of mergers and acquisitions. According to the current research, the concept of M & A performance, research methods and impact of three factors summarized herein with respect to M & A performance study of concepts and methods. The focus of this article is GEELY acquisition of Volvo cars performance analysis, excerpts GEELY Group’s financial statements for the year 2008 to the year 2013 the portion of the data, the first from the perspective of financial performance, focusing on analysis of the M & A GEELY profitability, debt ability to influence and operational capabilities, while leveraging the DuPont model analysis of the consolidated financial performance of the entire merger; secondly, the establishment of EVA performance evaluation model to analyze EVA GEELY Group acquired before and after the change; Finally, macro-political, economic, social background and other factors, considering the positive social benefits generated by mergers and acquisitions, draw GEELY acquisition of Volvo can produce a good acquisition performance of this conclusion, and the future of Chinese enterprises overseas mergers and acquisitions made reasonable suggestions.