Research On The Performance Of Cross-border Mergers And Acquisitions In Manufacturing Enterprises

Transnational merger and acquisition has been an important measure for multinational companies to take part in the market competition and obtain the global competitive advantage.With the deepening of economic globalization and integration,the mode of direct investment to other countries and corporations between countries has great changes,transnational merger has became one of the important way to promote the foreign investment.In the wave of all over the world join the transnational mergers and acquisitions,some companies from China are also actively to join.Because of the complexity of the competition and the complexity of the business environment in the world merger,it will be inevitable to lead to the difficulty and the risk of the mergers and acquisitions to other countries,and it will be much larger than the general domestic mergers and acquisitions.In recent years,in the background of The Belt and the Road,many companies in China have their manufacturing strategies.Domestic manufacturing enterprises in China constantly expanding abroad with rich capital.In 2016,the total amount of overseas mergers and acquisitions in China reached nearly $160 billion in the first three quarters of 2016.The market generally believes that in the "Made in China2025" and a strategy along the way the implementation of the new situation,China's fourth wave of mergers and acquisitions is expected to speed,and in the breadth and depth over the previous three times.Under this background,it is of great theoretical and practical significance to study the performance of cross-border M&A of Chinese manufacturing enterprises in the development of overseas mergers and acquisitions of Chinese enterprises.This paper first defines the concept of cross-border M&A performance and the status quo of transnational M&A of China's manufacturing enterprises in detail,and draws the characteristics and existing problems of cross-border M&A of manufacturing enterprises in China.Secondly,this paper analyzes the reasons that affect the performance of cross-border M&A,and builds the pre-evaluation model oftransnational M&A performance on this basis.Then,taking the Weichai power transnational mergers and acquisitions as an example,the event research method and the financial analysis method are used to study the change of the performance after the cross-border mergers and acquisitions from the short-term and long-term two angles.Finally,combined with the motives of cross-border M&A of Chinese enterprises,the corresponding countermeasures and suggestions are put forward from the angle of the enterprise and the government to participate in cross-border M&A.