Strategy-Driven Mergers And Acquisitions Of Companies

Economic globalization began in the 80's, is the cross-border goods and services are increase the scale of international capital flows, and the widespread dissemination of technology to increase the interdependence of the world economy. The impact of economic globalization brings enterprise is the most direct. It promote and strengthen the enterprise internationalization, the giant of trend. Large multinational companies have appeared, occupying a huge market share and competitive advantage. For these large companies, allowing companies to take advantage of economic globalization, the world's productive resources available.As information technology and other high-tech industry, the rapid development of knowledge economy era, the world's enterprises have to promote the organization, management and other aspects of change, mergers and acquisitions is a prominent manifestation of this change. G. J. Stigler through the study suggests that:"There is no large U.S. companies not through some kind of moderate, some form of mergers to grow up, almost no large companies rely mainly on internal expansion to grow up".Meanwhile, with the constant deepening of China's WTO accession, has been expanding opening up and economic impact of globalization on China's companies continue to strengthen, in this context, to enhance competitiveness looked imminent. Mergers and acquisitions is a shortcut. Cross-border mergers and acquisitions is the cross-border investors through certain legal procedures to obtain the host all or part of a company ownership of the assets of the investment behavior is the phenomenon of mergers and acquisitions and the phenomenon of transnational investment at a higher level of integration. As the main body of the market economy, the development of enterprises has a decisive role in economic development, China's economy is to integrate into the international economic system, we must first realize the internationalization of enterprises, therefore, cross-border mergers and acquisitions on China's economic development is great significance.In such a world-wide industrial restructuring and upgrading of background, the China have more opportunities to cross-border mergers and acquisitions. Because as the process of economic globalization and the acceleration of information technology, a new round of industrial restructuring is the world's rapid global expansion, along with the adjustment of industrial structure, high technology to transform traditional industries after winning a new development. This adjustment must be accompanied by a large number of mergers and acquisitions happen, from some major Western multinationals industry or industries to exit the low-end part, so it will sell its subsidiaries as appropriate to other companies or factories, particularly from relatively low level of industrial development of countries. For China's companies, this is a rare opportunity. In this context, this paper has a more important strategic significance of mergers and acquisitions.From the late 19th century Britain, United States and other Western countries during the climax of the first counting mergers and acquisitions, After the climax of six mergers and acquisitions, has been nearly a hundred years of history. The West and gradually formed a set of its economic system, economic development level of merger and acquisition business model, and has accumulated abundant experience. As a business growth strategy for the external trade of the most complex type, the most common mode of operation-the effective implementation of mergers and acquisitions of enterprises and the rapid growth of sustainable competitive advantage for crucial importance.The international mergers and acquisitions taking place on the significant characteristics of the strategy-driven, strategy-driven acquisition strategy of the enterprise for their own development needs and take the mergers and acquisitions activity, is related to capital, markets, technology and management, and other synergistic factors comprehensive restructuring approach, so this is actually "a business development strategy". This paper took into account corporate strategy-driven complexity of mergers and acquisitions and corporate strategy mergers and acquisitions in the relationship between the role of corporate strategy as the starting point for the development of the proposed acquisition of the corporate strategy, characteristics, impacts and dynamics of other issues for a more in-depth analysis and industrial organization and strategic mergers and acquisitions and strategic acquisitions based on core competence has been studied. With China, Europe and the United States, Japan, the strategic-driven business case to mergers and acquisitions motivation and after 90's the South Korea business strategy-driven mergers and acquisitions practice were analyzed.This article by reviewing several important world wave of mergers and acquisitions, focusing on the fifth wave of the characteristics of mergers and acquisitions, that its development of enterprises is great significance. The merger wave of the most important feature is that the perspective of corporate strategy for the acquisition of related businesses.This article from this perspective, acquisitions and strategic acquisitions discussed the origin and development. First, the paper on mergers and acquisitions theory. Secondly, the paper on horizontal mergers, vertical mergers, multiple mergers and acquisitions, finance acquisitions, resource acquisition background and impact of specific causes, the historical significance of a brief review and summary, and on this basis proposed, the 20th century, since the 90's the fifth merger wave, showing a larger amount of more wider range of characteristics, the fundamental drivers of mergers and acquisitions show a clear strategy-driven characteristics, the purpose of mergers and acquisitions show a strong strategic intent. Finally, the paper summarizes the basic characteristics of strategic mergers and acquisitions:the basis of enterprise development strategies; motivated by the search for strategic advantage; emphasis on improving the core competitiveness of enterprises; focus on mergers and acquisitions between companies complement each other, synergistic effect; presents the scope of transnational mergers and acquisitions and globalization. At the same time compare the effects of this are several key countries in the international economic environment and the strategic acquisition of the current situation and characteristics of mergers and acquisitions.Combined with case analysis, to identify the characteristics of a business case analysis for strategic acquisitions in selected countries are:China (Lenovo acquisition of IBM PC division), Europe and the United States (Rio Tinto acquisition of Alcan), Japan (Sony acquisition of Columbia) and South Korea (SK Telecom acquisition of Shenzhen E-eye High-tech Development Co., Ltd). This paper focuses on Korea's economic policies form the impact of acquisitions on corporate strategy, and in the course of the analysis also shows the strategic M&A business case analysis and strategic mergers and acquisitions are given on a number of issues worthy of attention.