The Horizontal M&A Performance Study Of Mechanical Manufacturing Industry

As the dominant industry of the national economy,machinery manufacturing industry is still the main support of the country's economic growth.But compared with the advanced level of developed countries there is a certain distance.Products made in our courtry are in the mid-range level.This is largely because the technology have not improved.With global market competition is increasingly fierce,the machinery manufacturing enterprises in our country at the request of the national policy guidance and its requirements need the core of foreign advanced technology to improve their product quality and performance.So based on some foreign outstanding enterprises horizontal merger is particularly important.Based on the analysis of horizontal m&a performance of Sany,which make a conclusion that whether horizontal merge acquistion created value or not.Through the case of horizontal merge acquisition of Sany review,we can analyze horizontal m&a motivation.Then from the perspective of financial and non-financial,we analyse the performance of horizontal mergers and acquisitions of Sany.Financial analysis mainly includes event study method,EVA and traditional financial indicators analysis.Through the analysis of Sany,the horizontal merger and acquisition,to a certain extent,is a success.But as a result of industry overcapacity,the shareholder wealth growth is not optimistic.Sany horizontal merge acquisition,moreover,did not form effective management synergy.Non-financial perspective is mainly for the product quality of service,scientific research and innovation,the company's strategic target implementation,the company's employees and the market share and industry concentration degree analysis.Through the study found that Sany horizontal merger makes the product research and development ability improved,rich company portfolio of products,quality service levels are also improved,increase the share of its products in the international market,but Sany personnel restructuring of the company after the merger is not reasonable.Base on discussion we summarizes conclusions and recommendations of this article.Sany basically achieved its m&a motives.its success lies in: Sany on the timing of m&a is relatively appropriate,Sany fully prepared for mergers and acquisitions provides power for a long time,the private equity fund was introduced in the acquisition,the horizontal mergers and acquisitions speed up the internationalization of Sany.But there are also disadvantages,such as the poor management synergies and the lack of integration.So this article suggested:(1)Effectively improve the performance of Sany(2)The mechanical manufacturing industry to be "rational" mergers and acquisitions(3)Be understand before m&a "theirs"(4)Introduce private equity funds in the process of mergers and acquisitions to reduce operating risk(5)Make subsequent integration after m&a.