Study On The Performance Of The Cross-border Merger And Acquisition Of Construction Machinery Industry In China

With the acceleration of economic globalization and the implementation of "going out" strategy,more and more Chinese enterprises take cross-border M&A as the new strategy to enlarge foreign direct investment,explore the international market,and improve the competitiveness of enterprise.In recent years,with the rapid development of China's construction machinery industry,some leading enterprises have their eyes on the international market and carry out cross-border M&A activities.However,in many studies,it has shown that the risk of M&A is great,especially in cross-border M&A and overseas M&A.Therefore,based on the theory of transnational M&A and combined with the practice of transnational M&A of Chinese construction machinery enterprises,it has important significance to deeply study the problems of cross-border M&A of Chinese construction machinery enterprises and the impact of cross-border M&A on enterprise performance.Through the case study of Liugong group acquiring Poland HSW,this paper analyzed its acquisition environment,motivation,process,etc,top priority of the analysis is the master company,Liugong group's performance changes before and after the acquisition,the evaluation of M&A performance includes financial analysis,Z analysis and EVA analysis,and compared with Liugong and Shantui's data to further explain the relationship between the change of the performance and the M&A activity.Then came to the conclusion that the overseas M&A to some extent promoted the improvement of Liugong group business performance,but this effect is small,and not enough to withstand the negative effects of the economic downturn.Finally,from the perspective of integration,it summed up the successful experience and the insufficiency in the case of Liugong group acquiring Poland HSW,and provided some reference for subsequent construction machinery enterprises overseas M&A.