Performance Analysis Of Forbon Group Purchasing Novochem Corporation

Since Financial Crisis of 2008 in Wall Street,many countries encounter economic recession,many of the world-renowned company's business continue to down.Some enterprises are underestimate at the time,shareholders have the strong will to liquidate,and thus reduce the M&A constraints of Chinese enterprises.At the same time,China's enterprises began to face the shortage of technology,lack of resources and the saturation of the domestic market.But mature technology,rich energy and a vast market can be the total solution to this contradiction in overseas market.For Chinese enterprises,cross-border mergers and acquisitions bring a lots of opportunities.Through cross-border M&A,companies can quickly acquire resources needed,thus they can enhance international competitiveness smoothly.More and more Chinese enterprises through the way of cross-border M&A to enter the international market.However,cross-border M&A transactions also face many problems in all aspects of M&A transactions.In the case of Forbon,we found that selecting acquaintances would help to increase the success rate of acquisitions,as this would help to lower the purchasing price,reduce the integration difficulty and shorten the integration time.Forbon M&A target selection,and M&A method provide a reference for companies wanting to implement M&A transaction in overseas.Through financial and non-financial aspects of performance analysis,we pay a lot of energy on analysis work.In the performance analysis aspect of financial indicators,we select the profitability index,growth capability index,solvency index and operating ability index which are related to the case to analyze the changes of important financial indicators for the period of M&A transactions;In the performance analysis aspect of non-financial indicators,we respectively analyze performance of technology,quality control,brand,market,personnel.In the process of exploration,the following ideas should be considered: first,we need to judge and evaluate the development history and relevant background,and then,according to its development,we know what motivates its development.On this basis,returns the theory to detailed case of Forbon on the basis of literature studies.The paper introduces the background and motivation of this M&A transaction,and describes the whole process of M&A transaction negotiation.Finally summed up the successful experience of this cross-border M&A transaction as well as the inspiration to us.