A Case Study On Overseas M&A

Since the opening up of China is increasingly deepened, more and more domestic enterprises have gone out of the country and conducted global investments, which is of great risk and uncertainty. Some of them have even participated in global M&A. It is cheering that the private enterprises in China gradually step up to the international stage and stand in the forefront of history. It not only implicates the healthy development of China's manufacturing industry but also reflects the growth of China's soft power as well as the embracement of Chinese businessmen's wisdom of the world.As a case study, this paper briefly analyses and judges the results of Greely's acquire of Volvo. I studied the performance study of M&A by former scholars and improved the accounting index method in order to study Greely's performance and Volvo's performance separately. And reached the conclusion that Greely's acquire of Volvo is a successful case of M&A. What's more, this paper also sets up a new logic to judge the performance of M&A, which takes long term performance in to consideration.Besides, this paper also scans the deeper reasons of Greely's success in acquiring Volvo, which is the integration. In management integration, Greely historically established the autonomy mode of Greely and Volvo, giving Volvo great freedom in its development in China, get rid of the restrictions of Volvo's development as well as introducing new technologies to Greely, boosting the cooperation of the two auto giants. Management integration cannot prevail without the common sense of value and culture. Greely as an "up-rising star" and Volvo as the "ancestry", they both have unique business philosophy. However, it is the common sense in the law of commercial society's development that brought them together. This paper also discusses the success of the acquiring in the cultural level and gives suggestions to those who want to follow Greely's step.Although a case study as this paper is, I did not reach the theory level. However, by giving commentary on other people's study in M&A performance, I give a new method of judging the result of M&A, hoping to induce greater contribution. This paper also serves as a row material for further study, which is considered to be the major contribution. Certainly there is still flaw in this paper due to the limited knowledge of mine, yet the deepened discussion of the case is of practical meanings.