The Analysis Of The Motivation And Performance Of Geely’s Cross-Border M&A Of Volvo

cross-border M & A can not only boost global expansion,but also enhance their international impact rapidly.Compared with investment forms such as joint ventures and cooperation,transnational mergers and acquisitions can promote the efficient integration of global high-quality resources.In 2010,Zhejiang Geely Holdings completed a 100% stake in Ford Motor Group’s Volvo company.The cross-border M & A not only attracted the attention of the whole world,but also was a great success story of China’s automobile industry.By studying this case,this paper analyzes the motivation and performance of Zhejiang Geely holding Group’s cross-border M & A.And based on the evaluation of late evaluation whether the motivation of M & A in 2010 is basically realized to reveal the reasons for the success of M & A.Through the collation of the specific events and data over the 10-year period,the motivation and performance of these events are analyzed as a system,and the motivation to achieve the expected results is studied.To study the case of transnational M & A and the performance before and after M & A will help to promote the good development of the enterprise itself in the future.At the same time for China’s auto companies to provide experience in cross-border mergers and acquisitions.The research method of this paper is the empirical form of the case study.The case of China’s blockbuster Snake swallowing was chosen-Geely bought a 100 percent stake in Ford’s Volvo.When studying the financial performance of M & A,we mainly adopt the method of accounting index research,through the analysis of single financial index and comprehensive financial index,comprehensively analyze the change of financial performance before and after M & A.This method is based on the financial and accounting data of the company,taking the profitability,solvency,operating level and other performance indicators as the evaluation criteria,and focusing on the changes of the micro-environment of the company after the merger and acquisition.An improvement in the financial situation The research on non-financial index is to analyze and evaluate the target enterprise’s future development ability,technological innovation ability,market share and so on.This paper is divided into six parts.The first part describes the domestic and foreign theories of cross-border M & A performance,expounds the research background and significance of the thesis,as well as the structure and content of the thesis.The second part introduces the theoretical basis of transnational M & A.Basic motivation theory and performance theory.The third part reviews the case of Zhejiang Geely Stock Company acquiring all of Ford’s Volvo shares in 2010,mainly including an overview of Geely Group and Volvo,respectively.The specific process of cross-border M & A and the analysis of M & A motivation.The fourth part,the performance analysis of Geely group’s cross-border merger and acquisition of Volvo: financial and non-financial performance The financial performance analysis includes single financial index analysis and comprehensive financial index analysis.Based on the one-way financial index method,this paper analyzes the profitability,solvency,operating ability and growth ability of Zhejiang Geely holding Company before and after M & A through 12 basic financial indicators.Based on the method of comprehensive financial index,the Dupont analysis system is constructed to evaluate the whole company.In terms of non-financial performance,the future development ability,technological innovation ability and market share are studied separately.The fifth part analyzes the impact of Geely’s cross-border merger and acquisition of Volvo.Including the future of Geely Group.The influence of the exhibition and the enlightenment to the automobile enterprises of our country.The sixth part,summarizes the research conclusion,the innovation,the insufficiency and the prospect of the research.