A Performance Research Of A Company Cross-border Acquisition Of B Company

In recent years,the scale and quantity of domestic enterprises participating in cross-border M&A are increasing under the background of the country developing foreign trade vigorously.Enterprises can break through the bottleneck of their own development by means of cross-border M&A,quickly access to relevant technology,enrich product categories and extend the industrial chain.At this point,the study of cross-border M&A performance-related issues for the future is of reference significance.This paper selects the case of A Company’s cross-border merger and acquisition of B Company as the research object,and studies whether the cross-border merger and acquisition improves corporate performance by establishing a performance evaluation system,and puts forward suggestions.The specific aspects are as follows: First,read and sort out relevant literature to understand the performance and performance evaluation methods of cross-border M&A;Secondly,it introduces the basic situation and M&A process of L Company and B Company.Then establish the M&A performance evaluation system with event study method,financial index method and balanced scorecard to evaluate and analyze the cross-border M&A performance.Analyze the market performance of cross-border M&A with event study method;Financial index method is used to analyze the financial performance of cross-border M&A from four aspects: profitability,solvency,operating capacity and development capacity.The non-financial performance of cross-border M&A is evaluated by using the non-financial aspect of balanced scorecard.The final conclusion is: L Company’s cross-border acquisition of B Company market response is obvious,to achieve the expected performance of the enterprise;Financial performance declined in the early stage of M&A,but after a period of integration,the synergy effect of M&A begins to appear,and the financial performance begins to rise;In the non-financial aspect,quality customers have increased,markets have been opened up,production capacity has been improved,and r&d capacity has been enhanced.In general,the cross-border M&A has improved corporate performance.Finally,according to the analysis results,it puts forward four suggestions: Selecting suitable M&A target;Controlling M&A risk reasonably;Strengthening technological innovation R&D;Strengthening the integration of resources after M&A.