Synergy and Value Creation in the Acquisition of Volvo by Geely (2015)
Synergy and Value Creation Dissertation – This dissertation evaluates the value and synergies created from the Geely-Volvo acquisition, and the acquisition motives behind that transaction. Data is collected from secondary sources, and evaluated using the content analysis method. The study concludes that while Geely lost value as a result of the acquisition transaction, Volvo gained value as a result of the transaction. Additionally, the acquisition generated no synergies.
The Geely-Volvo acquisition transaction was driven by several motives, including: the personal ambitions of Geely’s founder, Geely’s desire to gain access to Volvo’s sophisticated technology, to benefit from Volvo’s brand, and to gain access to the North American and European markets. Economic turbulence, and specifically, the global financial crisis, also contributed to the acquisition. Limitations faced by the study included the small sample size and the inability to use primary data.
Based on the research findings made and the limitations faced, future research directions are given. The aim of the dissertation is to explore whether the takeover create value for the shareholders of the two parties. Following from this aim, the research study has a number of objectives, which include:
- To explore the motives for Geely to acquire Volvo
- To explore the value creation for the shareholders of the two parties
- To examine the synergy realized after the acquisition
Based on the research aims and objectives, the following were adopted as the research questions:
- Did Geely’s acquisition of Volvo result in the creation of value for the shareholders of the two firms?
- What synergies, if any, were realised after the acquisition?
- What were the main motives behind Geely’s acquisition of Volvo?
- 16,000 words – 56 pages in length
- Excellent use of literature
- Good analysis of subject area
- Well written throughout
- Ideal for MBA students
1: Introduction
Background
Research Rationale
Research Aims and Objectives
Research Questions
Structure of the Research
2: Literature Review
Motives of Acquisition
Value Creation in M&As
Measurement of value creation
Synergies Associated with M&A
M&A between Developing and Developed Country Firms
Conclusion
3: Research Methodology
Research Philosophy
Research Approach
Research Strategy
Data Collection
Data Analysis
Reliability and Validity
4: Data Findings and Analysis
Value and Synergy Creation
Acquisition Motives
Discussion on How Research Objectives were Achieved
5: Conclusion and Recommendations
Acquisition Motives
Value Creation
Synergy Generation
Limitations of the Study
Future Research
6: Reflection
References
Appendix
