A Study On The Financial Problems Of Geely’s Cross-border Mergers And Acquisitions Volvo

With the development of economic globalization,the competition among enterprises is becoming more and more globalized,and cross-border mergers and acquisitions have become a means to enhance the competitiveness and scale of enterprises.In the pursuit of economies of scale and effective participation in the competition process,China’s enterprises have also embarked on the journey of transnational mergers and acquisitions in order to gain broader market,better talents and more advanced technology.There is a comprehensive introduction on the various financial problems that may exist before,during and after the activities of transnational mergers and acquisitions,while Geely’s acquisition of Volvo is a typical case of multinational mergers and acquisitions,so this article takes the Volvo case as an example to explore the financial problems of transnational mergers and acquisitions of Chinese enterprises and propose the corresponding solution.This paper first defines the concept and characteristics of enterprise mergers and acquisitions,introduces the related theories of enterprise mergers and acquisitions,including the motivation theory and the financial theory of mergers and acquisitions,mainly to analyze the case of Geely merger and acquisition of Volvo with these theories.The article briefly introduces the basic situation of Geely’s acquisition of Volvo,therefore,specifically for Geely’s acquisition of Volvo case,from the preparation before the merger,including mergers and acquisitions motivation analysis and strategic timing choice,to the problems encountered in mergers and acquisitions,mainly a variety of financial risk response,and then to the merger after the financial integration have done in-depth analysis,it also evaluates the performance effect after the merger.Finally,on the basis of theoretical research and case analysis,this paper points out the bright spots and merits of Geely’s acquisition of Volvo,and puts forward various suggestions on multinational mergers and acquisitions in China,and summarizes the Enlightenment of Geely’s cross-border mergers and acquisitions Volvo financial problems analysis and control.Through the research of this paper,we hope to help Chinese enterprises to effectively adopt appropriate measures to identify the financial problems of cross-border mergers and acquisitions and improve the success rate of cross-border mergers and acquisitions activities.