The Enterprise Merger and Acquisition Effect on Firm Value—A Discussion on Geely’s Acquisition of Volvo for Example

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.