Case Study On Cross-border M&A Of Ligeance Aerospace Technology Co.,Ltd.

Cross-border M&A(Mergers and Acquisitions)is a means to achieve rapid development of enterprises.Through it,enterprises can expand their scale,enhance their core competitiveness,achieve a reasonable allocation of production and operation resources across regions,and improve the value of enterprises.However,in recent years,although the number of cross-border M&A in China has been increasing year after year,the success rate of mergers and acquisitions is not high.Quite a several enterprises fail to achieve good performance improvement through cross-border M&A,which is probably related to the strategic decisions in cross-border M&A,the identification of M&A risks,and the integration of late M&A.Ligeance Aerospace Technology Co.,Ltd.initially a private mining enterprise,has been transformed into an aircraft manufacturer through the cross-border acquisition of Gardner Aviation in The UK on a small scale and a large scale.However,two years after completing the merger,Ligeance’s financial performance began to decline and even suffered a continuous loss,which may be closely related to Ligeance’s cross-border merger decision and the later integration process.It is very worth of study what has the company gained through cross-border mergers and acquisitions and what the performance of mergers and acquisitions of the enterprise exactly is and what other private companies in our country can draw on the experience from that.Therefore,the thesis makes a summary of the lessons that other privately-owned companies can apply and use using the multi-perspective analysis and evaluation for cross-border mergers and acquisitions of Ligeance Aerospace Technology Co.,Ltd.The approach of the thesis is case research.The theoretical part formulates the conceptions of the business combination,cross-border mergers and acquisitions,and M&A performance,as well as the theoretical foundation for M&A.Meanwhile,the case study,firstly has an introduction to the facts of M&A parties,for instance,the evolution of their histories,finances,productions,operations,etc.Afterward,it conducts an analysis of M&A in its motivation,merits,and risks.Through analysis,it is found that through merger and acquisition,the Ligeance does make the enterprise turn losses into profits,out of business difficulties,but merger and acquisition have also brought a lot of new problems for the enterprise,such as financing problems,debt repayment problems,integration problems,etc.The analysis also found that the m&a performance of the Ligeance cannot be fully measured from the perspective of finance,so this paper also analyzed the non-financial performance of the Ligeance and found that the merger and acquisition of the Ligeance have gained the improvement in talent quality,innovation ability,and core competitiveness.Finally,the paper summarizes the success and deficiency of the merger and acquisition of the Ligeanc and draws some enlightenment from this.The purpose of the thesis,it provides references to the cross-border M&A and conversion of private corporations so that they can strive for self-development and the promotion of core competence.