TITLE:
The Enterprise Merger and Acquisition Effect on Firm Value—A Discussion on Geely’s Acquisition of Volvo for Example
AUTHORS:
Zhilin Gao
KEYWORDS:
Mergers and Acquisitions, Market Economy, Geely Car, The Enterprise Value
JOURNAL NAME:
Modern Economy,
Vol.6 No.6,
June
18,
2015
ABSTRACT: With the development of market economy, mergers and acquisitions as an
enterprise can accelerate the rational allocation of resources, and optimize
the allocation of enterprise. Enterprise resource conservation, which is an
important means to realize the enterprise’s low-cost expansion in the market,
has been more and more used by enterprises. In this paper, through the study of
Geely’s acquisition of Volvo, we understand the effect of merger and
acquisition of enterprises, which is based on the analysis of financial
condition before and after Geely Automobile, at great risk to the meaning of
low-end brand merging and acquiring high-end car brand.