The Research On The Evaluation Of Performance And Case Revelation Of D Company Acquring M Company

With the arrival of the sixth global wave of M&A and the liberalization of the domestic foreign investment policies,cross-border mergers and acquisitions initiated by Chinese enterprises spring in the global capital market.The number and amount of cross-border mergers and acquisitions increase rapidly.In 2016,the amount of cross-border mergers and acquisitions of Chinese enterprises reached $220.9 billion,which is equivalent to the total amount of cross-border mergers and acquisitions from 2012 to 2015.The number of cross-border mergers and acquisitions also created the highest amount in history,up to 923.In recent years,many Chinese enterprises has turned to acquire the global giant multinationals.It means that Chinese enterprises are no longer confined to expand overseas markets,but begin to pursue international brand effect and seek foreign core technology by acquiring industry giants.However,due to the problems such as unreasonable personnel deployment,conflicting enterprise culture and unmatched operation principle,the success rate of cross-border mergers and acquisitions initiated by Chinese enterprises is not high.Therefore,this paper makes a study of the performance of a cross-border merger and acquisition case,D Company acquring M Company,using a combination of literature research method,case study method and index analysis method.Under guidance of the related research results and synergy effect theory,this paper analyzes the financial indicators and non-financial indicators before and after the merger in order to valuate D Company's performance of cross-border mergers and acquisitions,which is based on reviewing the events of the cross-border mergers and acquisitions from the motivation of cross-border mergers and acquisitions.It has been proved that some problems have been exposed in management,operation and financial cooperation.These problems have reference value in some degree,because they are common in many other cross-border mergers and acquisitions.This paper puts forward the following suggestions.First of all,D Company should promote cultural communication and construction among enterprises,which concludes determining the mode of enterprise culture integration,and establishing common enterprise values.Besides,D Company is ought to promote the integration of human resources management,including establishing effective communication mechanism,stabilizing the original personnel system and strengthening the cultivation of transnational talents.Further more,the exchange rate risk management is supposed to be strengthened,like building internal foreign exchange risk management system,clearing the target of foreign exchange risk management,setting up special foreign exchange risk management department,developing scientific foreign exchange risk management procedures,and using foreign exchange derivatives to hedge.Last but not least,D Company should strengthen accusing the management of cash flow by choosing appropriate mode of payment and broadening financing channels.