Cultural Integration In Merger And Acquisition

Since the end of the 19th century, five large-scale merger & acquisition (M & A) has happened throughout the global. Corporations in China have much progress since the reformation and opening. But the success rate of M & A is not very high. Research on the reason of the failure of M & A indicates that integration is a key tache that decides the performance of M & A. Integration after M & A is not only the key tache, but also is much more important and complicated than the deal of M & A.The reason why integration after M & A is so difficultly progressing exists in the large numbers of the collisions between two different corporations, which are brought by the heterogeneity of corporations in the final analysis. Corporate culture is an important factor that decides the idiosyncracy of corporations. On the other hand, whether integration can successfully achieve the anticipate aims or not depends on the development of the core capacity after M & A. Corporate culture can become the core capacity and accordingly support the durative marketable competitive advantage.Firstly, the article expatiates the five tidal waves of M & A and analyses the quality of corporate culture (the heterogeneity between the corporations and the amalgamation of the different corporations) and the functions of corporate culture. Then, the article analyses the origin and effect of cultural risk after M & A and puts forward four basal modes of cultural integration and the selective course of integration modes. On the basis of the above, the article analyses the cultural circumstances of the corporations in China and puts forward the possible modes.