Analysis Of Financial Synergy Effect Of Overseas Enterprises' Mergers And Acquisitions Based On AHP

Since the 16 th National Congress of the Communist Party of China,various enterprises with comparative advantages have implemented the “going out” strategy for foreign investment,driving exports of goods and services,and forming a group of powerful multinational enterprises and famous brands..According to Wind China data,China's M&A market has seen a sharp increase in transaction volume since 2009.In 2014,it was the highest in 32 years.The transaction amount reached US$396.2 billion,up 44.0% from the previous year.However,many companies regard the completion of M&A transactions as the ultimate goal,and the post-merger integration work is often neglected,so that financial synergies cannot be formed.As the core content of corporate mergers and acquisitions,it is the top priority to implement scientific and effective integration measures after mergers and acquisitions to achieve the expected financial synergy.In 2010,Geely acquired the entire equity,intangible assets and other related assets of Volvo Cars for a total of US$1.8 billion.According to the financial synergy effect of Geely Automobile's merger and acquisition in2018,the use of AHP to conduct M&A activities and its operations as the main line of research is the main topic of this paper.In the first part of this article,in 2018,President Xi Jinping proposed two "unwavering" policies and supported the development of the non-public economy.How can the private economy achieve high-quality leap-forward development and influence from the current domestic economic environment? From the perspective of enterprise development and profitability,through the analysis of relevant financial indicators,corporate brand building,etc.The second part summarizes the domestic and foreign scholars' literature on corporate mergers and acquisitions and financial synergies,combined with the theory of mergers and acquisitions and financial synergies,From the aspects of M&A implementation and integration process,financial synergy realization path and financial index analysis,the literature research method,case study method and analytic hierarchy process are used to analyze and evaluate the financial synergy effect after merger and acquisition.Firstly,itbriefly describes the background of Geely's acquisition of Volvo and preliminary summary of the integration activities after the merger.Secondly,based on the evaluation model established by the analytic hierarchy process,the solvency is selected according to the“Enterprise Performance Evaluation Index Value” promulgated by the SASAC in 2018.Four types of financial indicators,such as profitability,operational capability and development capability,and weights are determined.AHP is used for top-down financial synergy analysis,and the scoring scheme is designed to decompose the evaluation results to demonstrate their financial synergy;The financial synergy evaluation model is applied to the case analysis,and the financial data of Geely Automobile's 2009~2017 annual report is selected,and the calculation results are obtained.The comprehensive results of the financial synergy are analyzed and the influencing factors of multidimensional financial synergy are analyzed.The integration path experience after mergers and acquisitions provides successful experience for Chinese private enterprises to achieve good financial synergy in overseas mergers and acquisitions,enriches the existing financial synergy theory.Finally,the article analyzes the integration measures,financial synergy realization path and scoring results of Geely's acquisition of Volvo Cars,and summarizes the experience and process of Geely Group's acquisition of Volvo Cars to achieve financial synergy.In terms of medium and long-term effects,through the effective integration of key elements such as corporate strategy,core competitiveness,coordination between the two parties,and financial activities and resources,the Geely Group's local high-quality resources and Volvo's related technologies are integrated with each other.,achieving good financial synergies.The smooth integration of overseas mergers and acquisitions is a long-term work.Both in terms of organizational structure and management,both parties need to work together for a long time.As a successful case of overseas mergers and acquisitions by Chinese private enterprises,studying the acquisition of Volvo Cars by Geely Group can provide experience for overseas mergers and acquisitions of private enterprises in China.