Saic Causes Of The Failure Of Overseas Acquisitiongs

M & A market is an important international acts of economic expansion, but also indeveloping countries and enterprises with international standards, an important way tomaster advanced technology. Since the 90s of the 20th century, the global wave ofmergers and acquisitions within the growing, cross-border mergers and acquisitionshave become an important way of foreign direct investment, in developing Chinese autocompanies, also began the pace of foreign acquisitions, and mergers and acquisitions inoverseas markets gradually occupies a place. Shanghai Automotive Industry Group isthe representative of the Automotive Group, its acquisition of South Korea's SangyongMotor is known as "China's auto industry, the first case of overseas acquisitions," M & Aprocess and experience of its analysis has important research and practical significance .SAIC overseas M & A process can be divided into three stages, namely acquisitionof South Korea's Sangyong Motor, SAIC and NAC Rover dispute, the financial crisisSAIC's overseas M & A stagnation, failed. SAIC overseas acquisitions in the analysis ofmain causes of failure, the use of qualitative analysis and quantitative analysis, researchmethods, SAIC's financial indicators on selected areas of data description. With factoranalysis model SAIC's financial performance an empirical analysis, while SAICoverseas acquisitions and domestic reasons for the failure of the current situationbetween the other companies were summarized and extended.Although SAIC's overseas M & A integration process has gone through many upsand downs, but the lessons will go out for Chinese enterprises have great reference andinspiration. SAIC based on overseas experience and the Failure of M & A analysis, somesuggestions of other enterprises. Must have clear goals and plans, do not blindly M;focus on mergers and acquisitions during the financial risks and cultural conflicts;enterprise integration capabilities critical to success or failure of overseas acquisitions.Other enterprises in China when making overseas acquisitions to avoid duplication ofSAIC's errors, make cultural assessment of early development of integration plans,integration plans as soon as possible, with the trade unions to maintain effectivecommunication and exchange, training and other cross-border managers.