Geely Group M&A Value Evaluation Research

The reason why China automobile industry can develop rapidly has an important relationship with the foreign M & A of domestic automobile enterprises.Through M & A,technology can be acquired rapidly,market scale is formed and enterprise value can be promoted.However,whether M & A can help the value of enterprises really has not been determined by academic circles.Geely Group has achieved its development and growth through a large number of M & A,and its merger process and each merger and acquisition are worth further study.This paper studies the impact of M & A on Geely value from 2009 to2019,and provides a reference for future M & A of Chinese auto enterprises,which makes Chinese auto enterprises more rational M & A.and through the value evaluation of Geely Group,it provides some theoretical basis for investors to invest in Geely Group.Based on the theory of effective market hypothesis,future value theory and free cash flow,this paper analyzes the applicability of various value evaluation methods and chooses the free cash flow method to evaluate Geely Group.Firstly,the paper reviews the M & a process of Geely Group in 2009-2019,expounds the reasons for M & A,and after the merger,Geely Group has realized the scale expansion,cost reduction and efficiency reduction,and the technology of independent brand,improved the brand quality,extended the ecological chain in the field of financial technology,and became the leader of automobile industry;Then,the applicability of the method is analyzed,and the free cash flow method is selected to evaluate the value of Geely Group,the evaluation period is determined,the free cash flow is calculated and predicted,the enterprise value of Geely Group is evaluated.Through the analysis of financial dimension and non-financial dimension,it is concluded that Geely Group indirectly improves the enterprise value through continuous merger and acquisition;Finally,the paper summarizes the Enlightenment of M & A on the value promotion of M & A,and puts forward investment suggestions according to the evaluation results,so as to make reasonable investment decisions.