Is Geely’s Acquisition Of Daimler A Successful Strategy?

Under the tide of economic globalization,despite the difficulties in the development of China’s auto companies,they have also begun to go abroad and actively improve their international competitiveness.After Geely acquired 100% of Volvo in 2010,Geely once again invested 9 billion US dollars to acquire a 9.69% stake in Daimler.The success of the acquisition of Volvo gave Geely a sigh of relief,but Geely’s huge sum of money left to the market is a horror.Although the motivations for cross-border mergers and acquisitions are not the same,such as promoting industrial chain upgrading and transformation,gaining technological advantages,expanding market share and increasing brand awareness,enterprises should pay more attention to cross-border mergers and acquisitions,which have great risks,and cross-border mergers and acquisitions have many failure case.This article starts from summarizing the relevant literature and theoretical foundations,and combines related scholars at home and abroad to summarize the motivations of cross-border M&A,cross-border M&A risk factors,identification and evaluation methods of cross-border M&A risks,and so on.The concept is defined.Based on the theory of enterprise capability,synergy theory and risk management theory,the research framework of cross-border M&A risk management is constructed.As a pioneer of cross-border M&A in the industry,Geely is based on the specific case of Geely’s acquisition of Daimler and has certain representativeness.On the basis of clarifying the basic situation of both parties,the analysis of the motivation of Geely’s acquisition of Daimler is carried out,which not only identifies the risk factors based on objective facts,but also introduces the Boda sequence method,Delphi method and fuzzy comprehensive evaluation analysis method.And the analytic hierarchy process improved the original risk matrix model,and finally used the improved risk assessment model to obtain the risk assessment results of Geely’s acquisition of Daimler case.Through the research of this paper,the following three conclusions are drawn:(1)At present,the automobile market has become saturated,and the risk of foreign mergers and acquisitions in the automobile industry is relatively high.Geely may be in dilemma due to the acquisitionof Daimler;(2)The adverse effects of the market situation and the financial pressure generated by the acquisition,through the identification and assessment of the risk of the case,the financial risks and environmental risks of the acquisition are considered to be large,the company should be fully vigilant and prevent;(3)Enterprises should maintain a reasonable capital structure and rationally design financing channels and methods to reduce the pressure on debt repayment.