Research On The Performance Of Geely Automobile’s Cross-Border M & A Of Daimler

Although the current research work on cross-border M&A has started late,Chinese private enterprises are growing with the gradual development of the market economy and the domestic and international markets are stabilizing as they approach full saturation.Therefore,if Chinese private enterprises want to achieve real sustainable development,they need to further adjust their industrial structure,convert their business development mode and promote the development of socialist market economy.In a sense,cross-border mergers and acquisitions are particularly attractive to local enterprises and can rapidly increase their growth potential and can quickly enhance their development potential.At the same time,as the new generation of information technology,materials and energy continue to grow and develop over time,the automotive manufacturing industry has a whole new layout for development.As a result,some automakers have begun to strengthen their competitiveness through mergers and acquisitions to compensate for their disadvantages and help them complete their strategic layouts.Eight years after Geely’s successful acquisition of Volvo,another big move by Geely has once again caused a big stir.Geely used the method of buying shares in the secondary market to purchase a 9.69 percent stake in Daimler,costing a total of nine billion yuan.As market participants await the progress of Geely’s acquisition,it is necessary to evaluate the company’s post-merger performance.In this paper,we choose the Balanced Scorecard as the assessment system and analyze the motivation of this cross-border M&A based on the analysis of the previous industry environment and the corporate situation of Geely Automobile at the time of the M&A.We also analyze the theoretical basis of cross-border M&A and performance and the strategic objectives of Geely Automobile’s cross-border M&A of Daimler.On this basis,the performance of Geely Automobile after the cross-border M&A of Daimler is analyzed using four dimensions of the evaluation system.The results of the study show that Geely Automobile’s financial situation has been significantly improved by its multinational acquisition of Daimler,and although its profitability level is still declining,its operating capacity and solvency have been significantly improved,and its growth potential has been significantly enhanced.At the same time,with the support of Daimler,it has further strengthened its research and development force on hybrid power,and as a result,Geely’s market share and brand influence in China have been greatly improved.It can be said that Geely’s cross-border M&A has achieved better corporate performance.According to the study of Geely Automobile’s cross-border M&A,it can also bring some inspirations and values for Chinese enterprises in the automotive industry that want to make cross-border M&A.Before making cross-border M&A,enterprises must clarify the motivation of cross-border M&A,and should improve the ability to use capital as much as possible to ensure the smooth implementation of cross-border M&A,and should choose reasonable payment methods when making cross-border M&A so as to Reduce the risk of debt servicing after the M&A.