Research On Post-merger Integration Internal Control And Its Evaluation

Mergers and acquisitions as a strategy for expansion, favored by entrepreneurs, but the frequent mergers and acquisitions can't achieve the desired strategic objectives. Among the many causes leading mergers and acquisitions to fail, post-merger integration has drawn increasing attention to managers and scholars.Post-merger integration is the process of value creation after the merger, it will determine whether the merger will achieve value creation. This paper established a internal control process of the post-merger integration, it will be integrated into integration assessment and planning and integration implementation two processes. Integration assessment and planning begins prior to the due diligence, the merger integration group analysis the two sides'matching to determine the likelihood of integrating the target enterprise, and makes integration planning based on assessment results. Integration implementation phase begins after the M&A trade agreement signed by both parties, different working groups begin to do the implementation work based on the integration planning. Secondly, I established the internal control evaluation system of post-merger integration, post-merger integration evaluation will be divided into internal control process evaluation and internal control result evaluation. The process evaluation system is to proceed from the five elements of internal control; the result evaluation system is based on M&A drivers, analyzing the differences between the drivers and the result. Finally, I selected a case to analyses its post-merger integration and evaluation.