The Performance and Risk Analysis of M&A Deal: A Case Study of Geely Acquired Volvo

Abstract

With the development of economic globalization and the deepening of market-oriented reform, enterprises have been exploring how to expand market share, optimize resource allocation, and maximize market value. They finally found that M&A is one of the important ways to achieve this goal. M&A refers to the transaction activities carried out by enterprises in order to obtain the control rights and related resources of other enterprises under the role of market mechanism. It is of great theoretical significance and practical value to choose the right target firm, make reasonable adjustments to enterprise management after M&A, and pay attention to dealing with M&A risks, so as to give full play to the role of M&A. This paper takes the deal of Geely acquired Volvo as an example to conduct an analysis and research on M&A. Combining theory and case study. The paper analyzes the M&A transaction process, the main reasons, and the subsequent risk control. Based on the research, the paper puts forward suggestions and countermeasures on how to carry out M&A effectively and new ideas for enterprise expansion.