How Mergers And Acquisition Affect Financial Performance

1170 Words5 Pages
Student Name: Wenqing Gu Student ID: 201114686
Title:
Can company create value through M&A in technology industry?

Research area – according to different data btw acquiring firms and target firms to analysis their company value changes before & after in disclosure date.
Company choice: Cisco system Inc, Lenovo Group Ltd, Microsoft Corporation

Objectives
The report will focus on analysis what kind of impact will affect companies’ financial performance and its value through companies’ mergers and acquisition in technology industry.
This article will use a variety of ways for detailed analysis of how Mergers and acquisition affect financial performance, such as use the financial ratio to analysis corporate performance. Then use the PESTEL theory to analysis whether companies can benefit from Mergers and acquisition.

Rational for chosen industry and companies
Over the past few years, technology industry is important sector in our society, as the change of the global economic environment; the technology industry has great changes have taken place around the world. Frequent new products and category innovation define and redefine the sector’s constantly shifting landscape. Increasingly, technology firms are reexamining the structure of their businesses and taking bold steps to squeeze out better financial performance (Strategyand.pwc.com, 2015).

Lenovo is a multinational company. Lenovo is mainly oriented to China, Americas, Asia Pacific, and Europe-Middle east-Africa.
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