Research On Motivation And Performance Of Cross-border Mergers And Acquisitions

With the introduction of national preferential policies for new energy vehicles,the development of new energy vehicles has accelerated.lithium battery is the best choice for new energy vehicles,and the market scale is expanding.The huge market space promotes the continuous occurrence of capital operation in the lithium battery industry.Enterprises in other fields enter the lithium battery field by merging enterprises related to the lithium battery industry chain to find new profit growth points and realize positive transformation.Therefore,this paper selects the case of Aoyang Shunchang Co.,Ltd.merging Jiangsu Lvwei Lithium Energy Co.,Ltd.for analysis.Using qualitative and quantitative analysis methods,the motivation and performance of Aoyang Shunchang’s acquisition of Lvwei Lithium Energy were systematically analyzed.Firstly,this paper briefly analyzes the research background and significance,combs the academic literature of cross-border mergers and acquisitions in domestic and foreign academic circles,and comprehensively expounds and analyzes the concept,motivation and performance of cross-border mergers and acquisitions.Secondly,it specifically introduces the situation of both parties and industries,the process and motivation of the merger.Based on the motivation of M&A,combining the Event Research Method,EVA performance evaluation method and financial indicators,and at the same time evaluating the performance from the perspective of strategic transformation,this paper probes into the performance results of the M&A of Lvwei Lithium Energy by Aoyang Shunchang,and draws the conclusion of this paper and the corresponding enlightenment.Through the research,the following conclusions can be drawn: First,the value of enterprises is improved through mergers and acquisitions.The results of the event research method show that the market is optimistic about the expected development of the company in the future and the short-term market performance of the company is improved.The increase in the EVA index also indicates that the economic benefits brought by the enterprise’s investment in the merger and acquisition activities are sustainable,the development of the enterprise is good,and the enterprise value is improved.Second,the financial indicators performed well by bringing synergies into play through mergers and acquisitions of companies.After the acquisition of lvwei lithium energy,the company actively implemented the major strategy of "Ternary lithium battery and auto parts" new layout,and brought into play the synergistic advantage of scope economy after the acquisition.It has driven the Company’s profitability,operating ability and development ability to a good development.Although the solvency performance is not good in the short term,it has an upward trend in the long term.Third,it has achieved strategic transformation through merger and acquisition.In 2020,the name of the company was changed to Blue Lithium Core,and the business focus of the company was transferred to lithium batteries,which became the profit growth point of the company and realized the strategic transformation of the enterprise.The inspiration drawn from this paper is: the successful cross-border merger and acquisition requires diversified payment methods,and single cash payment will increase financial risk;Cross-border M&A success requires a certain degree of business relevance.