A Study On The Cultural Integration In Mergers And Acquisitions

Being a manner of capital operation, Mergers and Acquisitions (M&A) play a very important role in modern economy. Especially since the 1990's, there has been a new wave of M&A. People have realized that, on the background of economic globalization, M&A is one of the most important ways to enhance the competence of enterprises. However, while people are trying to improve the efficiency and competence of enterprises via M&A, they have to face up a paradoxical fact that sometimes M&A do reduce the enterprise performance in the market instead. Actually, taking over an enterprise in itself does not mean a success, sometimes it is just the prelude of a serious loss. Why so? Why dose an expansion in size cannot boost profit? Why does a well-planned capital restructuring cannot bring forth expected proceeds? This thesis concludes that the key point finds itself in cultural integration. In effect, an organic integration of corporate cultures holds the key to a successful M&A.This thesis focuses on the active and counteractive correlation between M&A and corporate culture, and deems that the cultural integration plays a significant role in realizing the M&A's strategic objective. In the process of study, this thesis attaches great importance to verifications by probing various cases taking place in the real modern economic life. By a thorough analysis of different enterprises and different forms of M&A, this thesis introduces the major forms of cultural reconstruction. In its due course, this thesis brings forward the principles, approaches and tentative measures of cultural integration, aiming to be helpful for relevant enterprise M&A.