Research On Performance Evaluation Of Transnational M&A Of Enterprises Based On EVA

Since the Communist Party of China clearly put forward the "going out" strategy at the 17th National Congress,Chinese enterprises have begun to be active on the international stage,which has promoted the structural upgrading of domestic industries and improved the efficiency of the national economy.In the October 2013,"the Belt and Road" initiative significantly boosted the transaction volume of overseas mergers and acquisitions,especially in countries and regions along "the Belt and Road".In the November 2015,with the introduction of "Supply-side Reform",Chinese companies began to use overseas investment as a way to alleviate domestic overcapacity.The Blue Book on Foreign Investment and Risk(2017)issued by the Chinese Academy of Social Sciences shows that China has become the second largest foreign direct investment country in the world,and cross-border M&A has been an important form of foreign direct investment for Chinese companies.The promotion of economic globalization has led a large number of enterprises to choose transnational mergers and acquisitions as a way to transform into multinational enterprises.Although cross-border mergers and acquisitions have their own advantages,there are also many uncertain factors.From the current research,in the cases of corporate cross-border mergers and acquisitions,the failure cases accounted for a large part.Therefore,for enterprises,before the merger and acquisition,it is necessary to consider many aspects.After the merger,it needs appropriate methods to evaluate the performance of cross-border mergers and acquisitions,and judge whether the cross-border mergers and acquisitions of enterprises have a positive impact on the performance of enterprises or not.At the same time,the establishment of an evaluation system can also provide reference for other companies to evaluate the performance of mergers and acquisitions.The case selected in this paper is the Midea group's cross-border M&A KUKA in 2016.It uses case study method,literature research method and comparative analysis method to evaluate the performance of M&A in Midea Group before and after M&A.First of all,this paper introduces relevant theories and the relevant evaluation methods of M&A performance and finally chooses EVA as the main performance evaluation method.Secondly,it introduces the background of M&A,the development of enterprises of both sides,the process and the motivation of M&A.Thirdly,it focuses on using EVA and also uses other methods as an auxiliary method to analyze the M&A performance of Midea Group.It turns out that Midea Groups acquisition of KUKA has brought a more positive impact to Midea Group.Finally,from this case,the article obtains relevant enlightenment and hopes to provide relevant suggestions for the future merger and acquisition of enterprises and using EVA as a method of evaluation of M&A performance.