Analysis of the Risks and Synergies Arising from Corporate Mergers and Acquisitions: Sed on the Case of Greely’s Acquisition of Volvo

Overseas Chinese College, Capital University of Economics and Business, Beijing, 100070, China

^* Corresponding author: Yechi.Ma@cueb.edu.cn

Abstract

Based on the case of Geely’s acquisition of Volvo in 2010, this paper analyzes the reasons for its M&A by applying the SWOT model and analyzes the risks arising from the financial and integration aspects of the company at the time of the M&A, as well as the synergistic effects arising after the M&A, to explore the timing and manner based on which is the most favorable for the corporate M&A. Geely’s acquisition of Volvo is a case of an acquisition of a leading Chinese and European company in a critical industry. By fully exploring and analyzing the impact of various factors on the M&A process, including those involving capital, technology, personnel, culture, etc., as well as the post-acquisition operation and management model, we analyze how to improve corporate competitiveness after the M&A, taking into account the international market environment and industrial logic, and for company leaders in For whether corporate M&A should be carried out, they should understand the strategic positioning and objectives of the company and select objects with strategic significance for M&A. Establish a clear integration plan and objectives, and carefully implement the integration plan after the M&A to ensure the effectiveness of the integration and the implementation effect. Focus on M&A cultural integration, establish a shared corporate culture, and promote collaboration and cooperation among M&A companies to enhance overall value.