Research On The Motivation And Performance Of The Overseas Acquisition Of The J Company

With the continuous development and recovery of the global economy and the increasing brand strength of China’s own car companies,the development of China’s local auto manufacturing companies has been promising in recent years.In order to seize the opportunity,a number of auto manufacturing component companies are seeking rapid development by way of overseas M&A to accelerate their overseas presence,of which J Corporation is a representative company.Generally speaking,the purpose of M&A is to catch up with competitors in the same field.In the context of accelerated global economic integration,there is a global and even Chinese M&A boom,which involves multiple industries and huge amounts of capital.Therefore,this thesis takes the M&A events of Chinese firms as the object of study and selects Company J,a representative firm in the auto parts manufacturing industry,to study the motivation of its M&A of Japanese Company G and to assess whether its post-merger performance meets the relevant expectations of the firm.This thesis reviews the domestic and international literature on the motivation and performance of M&A,and introduces the main theoretical knowledge related to M&A and the related performance evaluation methods.Then,it introduces the background of the acquirer and the acquiree,summarizes the M&A process,and analyzes the motivation of J’s M&A and the post-acquisition impact of J’s M&A in the context of the case of J’s M&A of G.Then,based on the theory of performance evaluation,I analyze the data before and after the acquisition of Company G by using the event study method,financial index method and economic value added analysis method,and draw relevant conclusions.the main motivation of Company J’s M&A is to broaden the overseas market,improve the company’s technology,seek synergy effects,quickly break the industry barriers and improve the industrial chain.In terms of M&A performance,I believe that the M&A of Company J by Company G was successful on the whole,although there are many shortcomings to be considered.Specifically,the rise in short-term stock prices and the increase in economic value added are more obvious,but the changes in financial performance are not significant,especially the soaring debt ratio after multiple mergers and acquisitions,and the risk of significant goodwill impairment in the future due to high goodwill.After analyzing and evaluating the successful experience of J’s M&A,This thesis puts forward some suggestions for the possible problems in the merger,such as easing the pressure on profitability after the merger;Attach importance to risk management;Continue to enhance innovation ability and speed up the promotion of new business hope to help company J’s future development.