Research On Synergistic Effect Of Geely Acquiring Volvo

Mergers and acquisitions among enterprises are both high-yield and high-risk activities,and for cross-border mergers and acquisitions activities,the risk is higher,complexity is also higher.Cross-border mergers and acquisitions,as a form of foreign direct investment,have great promotion in global business expansion.Compared with investing factories in foreign countries,multinational mergers and acquisitions can help companies to integrate the world dominant resources in the short term,enhance its international competitiveness fast.There are a large number of global mergers and acquisitions activities occurred each year,but enterprises which meet their mergers and acquisitions targets are not too many.A lot of mergers and acquisitions cases show that many enterprises' earnings after the acquisition even are lower than the acquisition pay.China is in active mergers and acquisitions phase,the size and number of mergers and acquisitions are increasing,but the failure rate of mergers and acquisitions is also high,such as TCL acquiring Thomson ended in failure.Contrary examples to that,Lenovo acquiring IBM's PC brand Thinkpad in 2004,and Geely acquiring Volvo in 2010 are very successful mergers and acquisitions cases.A large part of these two cases' success are reintegration after the acquisition,which made these enterprises become more and more efficient after the acquisition.This paper is going to analyze Geely acquiring Volvo case in four aspects,operating synergies,management synergies,financial synergies,and intangible assets synergies,trying to explore the synergy results.This paper analyzes Geely acquiring Volvo case,researches on synergistic effect of Geely acquiring Volvo,using case study method.The first chapter is introduction,mainly introduces the research background,research significance,research contents,research thoughts and research methods.The second chapter introduces the Geely acquiring Volvo case in detail,firstly give an introduction of both party,Geely and Volvo.Then introduces the background,and the process of mergers and acquisitions,as well as the motivations of Geely acquiring Volvo.The third chapter analyzes the synergistic effect of Geely acquiring Volvo case in four aspects,operating synergies,management synergies,financial synergies,and intangible assets synergies.The analyses combine with Geely's eight years financial data and financial indicators to research.The fourth chapter is conclusions and suggestions,summarizes the results of Geely acquiring Volvo synergistic effect,as well as some suggestions derived from the analyze.