The Realization Of Financial Integration Effects After The Enterprises' Mergers And Acquisitions

In contemporary global market of economic integration, the competition between enterprises keeps increasing more frequently, especially between some international enterprises, or between some transnational enterprises with some local enterprises, their economic interactions keeps growing in recent years. This phenomenon has brought our local enterprises some competitive pressure in many aspects. In order to enhance the internal strength of local enterprises and win a vantage point for them, it is necessary to understand the contents of M&A, since M&A activities between enterprises can be the powerful way of expanding of business scales, occupying more consumption market and effectively enhancing the competitiveness of the market. Because of this, the researches about the content of the M&A activities, processes and key aspects become particularly important. M&A activity in the enterprise, the direct impact on the financial effect of the enterprise, is one of the key factors in achieving that M&A activities after the implementation process of financial integration, corporate mergers and acquisitions practice in the following, is there to take a series of integrated measures in a timely manner? Whether there is proper integration of a series of effective strategy? Whether fully or create a post business advantage? These are all effects of corporate finance and M&A after the realization, even with the success or failure of M&A activity is closely related to the impact. We know the correct and effective financial integration can fully and effectively integrate the advantages of those enterprises and help enterprises to maximize them, and then help those companies to gain more benefits and markets. On the contrary, inappropriate financial integration would bring negative financial effects to the enterprise to a great extent, directly cause the loss of the enterprise's benefits and decrease of the enterprise's competitive strength. For these reasons, a research about the realization of the enterprises'financial integration is extremely important and necessary.In view of the merger and acquisition activities in our country start very late, the experiences of merger integration and the perfection of relevant laws and regulations seem to be particularly inadequate. Therefore, the experiences of M&A activities in Western countries and some lessons learned from researches on financial integration strategies are very important for local enterprises to improve the quality of M&A activities.This article prepares to start with the introduction of three ways of the realization of the financial integration effect after M&A activities, dealing with the integration of financial information system by targeting interventions, executing financial integration by transformational changes and canceling those deals which can't help to realize the financial integration effects. Respectively, introducing the problems exist in the M&A activities in our country presently and the reasons in detail. For example, our present imperfect system of M&A integration is mainly manifested of financial integration and the corresponding business integration is not fully complete, some parts of the tools and methods of the actual financial integration are not so perfect and compatible enough, and some of the problems appear in the M&A activities are not well solved. And the reasons caused those problems seem to be those enterprises did not adapt to their scale expanding and organization adjustment in time, the management work of those enterprise after M&A activities is not so appropriate, the lack of advantaged experiences of dealing with problems appear in M&A activities and unnecessary intervention of the government. These factors caused the difficulties to realize the financial integration effects after M&A activities of local enterprises. Moreover, this article will select two M&A examples of western enterprises who have successfully realize their financial integration effects, and choose some relative financial statistics of these two companies to analyze their financial statement after the M&A activities have been taken, and then inosculate those western researchers'theories to draw the conclusion about some advantaged experiences, finally give some suggestions to improve the qualities of local enterprises'M&A activities from three aspects. For instant, determine reasonable goals in a right way and develop the acquisition plans before M&A activities, clearly and timely make the appropriate financial integration strategies and execute them as soon as possible, identify and decide the appropriate integration area after M&A activities have been taken, and carry out financial integration in time; reasonably prevent those potential risks which might happen in the M&A transactions, sufficiently make use of the synergistic effect to realize financial integration effects, appropriately use enterprises'cultural strategies integration to help to realize relative financial effects, actively and steadily coordinate with business integration; pay close attention to the feedback of M&A activities and make appropriate strategic adjustments, check the enterprises'investment theme and their competition basis and then make some reasonable transformations, cancel those M&A deals which cannot be adjusted and had a strong and bad impact on the enterprise's financial situation, so as to rationally and intelligently handle those difficulties appear in financial integrations, and so on. These methods could help local enterprises to realize their financial integration effects after M&A activities in a better way.