A Case Study Of ZJLS's Cross-border Mergers And Acquisitions(M&A)

In the context of economic globalization,the integration of economy and culture is getting faster and faster,many Chinese enterprises not only occupy a high market share in the domestic market,but also have a certain economic strength and the ability to compete in the international arena.Even so,compared with foreign counterparts,many Chinese enterprises still have a big gap in many ways.Therefore,under the influence of international competition,if Chinese enterprises want to carry out market expansion and strategic resources quickly and effectively to enhance their international level,cross-border mergers and acquisitions is the primary choice.Through cross-border mergers and acquisitions to obtain the qualification to access to overseas markets,they can learn foreign modern management experience,advanced technology,talent and resources via cross-border mergers and acquisitions and shorten the research and development time effectively,thereby to save and reduce costs,enhance competitiveness of Chinese enterprises in the international status.But in fact,cross-border mergers and acquisitions' cases of Chinese enterprises are not able to proceed smoothly,so the study of Chinese enterprises' cross-border M&A performance is a theoretical and practical significance.This paper chooses the more representative cases of cross-border mergers and acquisitions,and takes ZJLS cross-border mergers and purchases DSD as the study object,center on the research of whether cross-border mergers and acquisitions could improve the enterprises'performance.The first part is to introduce the background of two sides of the merger systematically,including the development history,the type of production,the product qualification and so on,in order to explore the motivation of ZJLS merger and purchase DSD to learn the resource that ZJLS hope to get from this merger and acquisition.The second part is to deeply study ZJLS cross-border merger and purchase DSD case,and will combine the accounting index method and the balanced scorecard to evaluate the performance of the merger.A conclusion can be made from the analysis of performance(the existing conclusions are as followings):from the business performance analyzed by the accounting index,the case of ZJLS mergers and purchases DSD brings a positive effect to ZJLS,which reflects in that every index of the business performance is relatively outstanding.By analyzing the financial data from 2010 to 2015,and comparing the changes of financial data before and after the M&A,the M&A performance will be evaluated in the form of four financial indicators,that is profit indicator,operating indicator,debt service indicator,growth indicator.From the compare and analysis,financial index are found that both have a constant degree of change.Firstly,the profit index indicates that the benefits from mergers and acquisitions are considerable to the enterprise;secondly,the operational capacity and solvency are to rise firstly and then down to the trend.Although the operating capacity and solvency from the indicators seem not very optimistic,because the enterprise is under the integration stage,the running time should be needed,so the operating capacity needs to wait and observe for some time.While the debt service index is a slight decline,but it is still in the reasonable range,to compare the date before and after the M&A,ZJLS short-term solvency and long-term solvency have a little increase than the earlier period.From the growth index,the suggestion will be given is to focus on the effective integration from every aspect in the late period.From the four level of the balanced scorecard,the customers have significant changes after the merger and acquisition,indicating the ZJLS also actively develops the customer groups and actively uses the DSD resources.ZJLS a series of strategic integration could be relatively visible from the internal process,especially the previous two year's integration of technology and business management that makes ZJLS has a lot of improvement in the business management situation and to promote the realization of strategic objections.In the aspect of learning and growth,ZJLS steps into the pace of research and development to learn DSD advanced technology.In addition,from the analysis of the synergistic effect of business and management and finance,we can find that the development of strategic objectives,the choice of strategic partners,the flexible payment methods and the effective post-integration are very important,which are the main factor to influence the M&A performance.The third part is analyzing through the performance of ZJLS cross-border mergers and purchases DSD to clearly sort out some questions and solutions[10]met in the process of M&A.The four part is some conclusions that made from the above performance's analysis and influence factor find that the strategic partners'appropriate choice,the clever strategy of the debt-to-equity swap and the effective integration after the merger have become the main factor influencing the M&A performance.