The Improvement Of Enterprise Performance By Cross-Border M&A

Through cross-border mergers and acquisitions,enterprises can obtain strategic resources of foreign enterprises,thereby improving their core competitiveness.Due to the late layout in some industries,Chinese enterprises lag behind some excellent foreign enterprises in technology,so they lack competitive advantages.In recent years,many companies have conducted cross-border mergers and acquisitions.They hope to improve business performance in this way,but not all companies achieve this goal.In order for more companies to profit from cross-border M&A,it is crucial to explore the impact of M&A on corporate performance.According to the synergistic effect theory,three influence paths of cross-border mergers and acquisitions on corporate performance are established.In the meantime,this paper establishes a performance evaluation system for electronic components and device industries to evaluate the enterprise performance of Wingtech.When analyzing the successful cases of Wingtech,this paper firstly introduces the situation of Wingtech and Nexperia,and outlines the merger and acquisition process.In the meantime,the reasons for Wingtech’s cross-border mergers and acquisitions were discussed.Secondly,using the established enterprise performance evaluation system to compare the enterprise performance of Wingtech Technology before and after the merger,it is found that after the cross-border merger,the company’s financial performance and management performance have improved to a certain extent.Then,according to the situation of Wingtech Technology,three influence paths are analyzed in detail:(1)Management synergy effect.By adjusting organizational management and increasing R&D efforts,the business decision-making efficiency and development and innovation ability of the enterprise are improved;(2)Operation synergy effect.Accelerate asset turnover by promoting the integration of production operations,enhance corporate profitability by promoting market integration,and enhance the industry influence of enterprises by promoting industrial integration;(3)Financial synergy effect.By integrating financial resources to enhance the growth ability of enterprises,obtaining multi-channel financing also reduces the debt risk of enterprises.Finally,starting from the three influence paths of cross-border mergers and acquisitions on corporate performance,three revelations are summarized,that is,to make good use of the synergies brought about by cross-border mergers and acquisitions,and correspondingly put forward targeted suggestions.The main contribution of this paper is to summarize the three impact paths of cross-border mergers and acquisitions on corporate performance,thus improving the corresponding theory.At the same time,the trend of cross-border mergers and acquisitions has not stopped.This article will help these enterprises to achieve the goal of improving their corporate performance by analyzing the experience of Wingtech.