| M&A between businesses has aroused widespread concern as a means of capital operations in recent years, for successful M&A can enhance a business's competitiveness and boost the operation efficiency of the business assets. However, the business M&A is not a simple combination in figures with the two businesses but a rather complication process of integration involving a large variety of factors. The business M&A activities are in tremendous rise lately in China, but quite a lot of them turn out to be failures rather than successes as expected. Any tiny fault made in one link of the whole process, from the setup of the M&A strategy, the choice of the M&A target, the process of negotiation to the integration of the two businesses after M&A, can trigger total collapse to the deal. The analysis and appraisal of the integration effect is another crucial aspect of business M&A, which is a quantitive reflection of the integration effect and the whole M&A effect. This paper will focus on the financial integration after Business M&A and analysis and appraisal of effectiveness of financial integration on the basis of case study.The first chapter of this paper gives a brief account of basic theories of financial integration and the present research into this field at home and abroad. In the second chapter it analyzes the theoretical foundation of financial integration. Then the third, fourth and fifth chapters give detailed description of the patterns, contents comprised in financial integration and its effectiveness appraisal. As for the contents, it includes integration of financial management's target, integration of financial institution's structure and functions, integration of financial systems, integration of financial human resources and integration of business liabilities. And the effectiveness appraisal of financial integration is made with the elements such as reimbursement capacity, assets management capacity and main business operations. And with the case of the Topsun Group's merger with Qianjiang Phannaceutics the paper demonstrates how to make objective effectiveness appraisal of financial integration in the sixth chapter. And the last chapter draws some conclusions about financial integration after business M&A.As for the research methodology, the paper combines theories with practice. It tries to to clarify a range of issues concerning financial integration after business M&A with reference to documents and papers home and abroad, system theory in philosophy and dissipated structure theory in physics. Approach of vertical contrast and systematic analysis of financial indicators are adopted to appraise and analyze the effectiveness of financial integration.It is hoped that this paper can offer practical operational reference concerning the financial integration for the business M&A, bring down the integration cost and raise the chances of M&A success. |
