Research On Geely's Acquisition Of Volvo Integration And Integrated Performance

In recent years,because of the development of many domestic enterprises and the speed of domestic economic development came slowdown,enterprises start to look for overseas expansion.From 2004 to 2015,cross-border transaction of China increased tenfold.In the first half of 2016,the amount of private enterprises' overseas mergers and acquisitions overtook the state-owned enterprises for the first time,and become the main of overseas mergers and acquisitions in China.But integration activity after M&A is the most prominent problem of Chinese enterprise M&A,most enterprise took mergers and acquisitions as the purpose,frequently overlooked the integration work after merger and acquisition,and then unable to make full use of its advantages in resources,unable to form the synergistic effect.While the influence of the M&A integration involves not only financial,stock prices,it should consider more about enterprise's long-term development potential,and even the enterprise external customer,the influence in the society from large scale,so we need to measure the effect of M&A integration comprehensively.For further research on integration after M&A and performance of integration,my study took the Geely's acquisition of Volvo cars for object,using literature study,case study,quantity method to analysis of integration and performance issues such as the consolidation process,financial performance indicators,many aspects,sales and so on.Based on summarized the literature about M&A integration problem,analyzed problems of the Geely's acquisition of Volvo cars like the process of financial integration,and then analyzed the trend of financial indicators and sales performance during several years around the Geely's acquisition of Volvo cars,expounded the gain and loss of the M&A integration activity.The most difficult part of overseas M&A integration activities is integration of enterprise culture,the main reason of failure about Chinese enterprises transnational M&A case is cultural fusion,domestic enterprises should focus on this when them choose to have a overseas M&A.In my study,financial indicators mainly focuses on the two dimensions——corporate profitability and operating capacity,sales performance is divided into Geely own-brand sales and the sale of Volvo brand,and then I have used the PCA(principal component analysis)to analysis the aggregative indicator of finance.Through the above analysis,this study gave the conclusions and Suggestions from two aspects——short-term effect and long-term effect.Due to the short-term effect,the Geely's acquisition of Volvo cars is fruitful.Geely has won the popularity of the market and grate profits in return though the progress is difficult and also had errors in management decision-making.The enterprises need to prepare for M&A strategy in the light of their own specific situation,selecting the suitable object of mergers and acquisitions,and making a perfect plan of M&A integration.Due to the long-term effect,Geely's M&A integration of Volvo cars is still ongoing,even in the first half of the stage.The overseas mergers and acquisitions smooth integration is a long-term work.The acquirer and acquired enterprise all need a long time to get up to speed whether from the management or enterprise culture,integrating the resources of both sides to create value and wealth for the enterprise and society.