Research On Performance Evaluation Of Geely’s Merger And Acquisition Of Daimler Based On EVA-BSC

In recent years,more and more enterprises have begun to seek growth through mergers and acquisitions.Geely Holding Group has been committed to cross-border M&A since the20 th century.With the rapid rise of China’s automobile industry,it is likely that more and more cross-border M&A events in the auto industry will occur in China in the future.Taking Geely’s M&A of Daimler as an example,this thesis uses the performance evaluation system combining EVA and BSC to combine financial indicators with non-financial indicators,which makes up for the shortcomings of EVA in non-financial indicators and the deficiencies of BSC in financial evaluation,this thesis applies the performance evaluation framework combining EVA and BSC,which combines financial and non-financial indicators to make up for the deficiency of EVA in non-financial indicators and the deficiency of BSC in financial evaluation,and deepens the research on the performance evaluation framework of M&A.At the same time,it has reference and guidance significance for the performance evaluation of similar M&A events,and helps to test whether Geely’s M&A of Daimler has achieved the goal of scale expansion,and to test the problems that exist after Geely’s M&A of Daimler,so as to provide suggestions and ideas for the occurrence and development of future M&A events of Geely Holding Group.This thesis firstly delves into the background and related conceptual theories to clarify the inevitability of combining EVA and BSC.Secondly,it outlines the M&A parties and the M&A process,and concludes that the purpose of Geely’s cross-border M&A is mainly to achieve scale expansion,improve the competitiveness within the industry,break through industry barriers,integrate high-quality resources,enhance international visibility,and promote the development of overseas markets.Then adjust EVA,and the data of Geely Holding Group from2015 to 2021 are specifically calculated and analyzed in four aspects: financial,customer,internal process,and learning and growth,respectively.Through data analysis,it is concluded that after the M&A,Geely Holdings Group’s short-term profitability and solvency have improved,long-term solvency has decreased,operating capacity has remained almost unchanged and growth capacity has slowed down.Internal processes need to be optimized in many aspects.Customer development level and learning and growth dimensions have been improved.Then the performance evaluation framework combining economic value added and balanced scorecard is constructed,economic value added is adjusted,and the data of Geely Holding Group from 2015 to 2021 are specifically calculated and analyzed in four aspects: financial,customer,internal process,and learning and growth,respectively,using the methods of comparative analysis,financial index method,and event study method.Through the data analysis,the following conclusions were drawn: after the M&A,the financial performance of Geely Holding Group within 30 days was improved,but it was not obvious,and the M&A act improved the short-term financial performance of the enterprise,but had little impact on the long-term financial performance improvement of the enterprise;after the M&A,the overall momentum of the indicators in terms of customers of Geely Holding Group was greatly improved,and the efforts in various aspects brought by the M&A event won Geely Holding Group a good The performance of the internal process indicators is uneven,and the M&A event did not optimize the internal process of Geely Holdings Group too much;the learning and growth indicators all show a good trend;Geely’s acquisition of Daimler has had a positive impact on Geely’s development in recent years.Finally,in response to this performance evaluation study,three insights are drawn: companies should strengthen integration after M&A,continuously optimize internal processes,and enhance innovation and R&D capabilities.It is hoped that the analysis in this thesis can bring certain insights and references to the overseas M&A of enterprises in the automotive industry and improve their M&A performance.