Research On The Cross-Border M&A And Integration Of Lenovo

We should remember a historical date, Dec 8th of 2004. Maybe it would change the PC current situation of our country, even to the whole world. During the process, Lenovo Group paid 12.5 hundred million dollars for IBMPC. It was just a beginning for the PC situation of the whole world. Absolutely, Lenovo Group plays a key role in the PC market of world.First, the main purpose of this thesisIt just likes that one coin has two sides. It would lead to the fast development of Lenovo if it had run well. Otherwise, it would be a mischance. So it's very important for a company to have some professional knowledge and evaluation before the M&A (Mergers and Acquisitions).The main purpose of this thesis is how to evaluate the success and failure of this kind of cases.Second, the main content of this thesisBased on the Cross-Border M&A of Lenovo, This thesis mainly explains the content of this case, meanwhile, it focuses on the theoretical analysis concerning Cross-Border M&A of Lenovo. Referring to a lot of parts, such as incentive of the Cross-Border M&A, target getting, target estimating etc. With the problems arising during the course of integration after M&A, this thesis tries to explore the causes of the problems, further to find out some revelations of this Cross-Border M&A, at last with the aid of correlative theories to puts forward some practical solution to the problems and to give some advice to Chinese Cross-Border M&A. According to that, the whole paper consists of five parts as follows:Part one is the preface. It introduces the research reason and meaning. Meanwhile, it refers to the methods and content of this thesis.Part two, it reviews the literature summary about Cross-Border M&A. I t includes some theory in our country and foreign countries.Part three, it display the whole process of Cross-Border M&A of Lenovo.Firstly, it introduces the basic theory about Cross-Border M&A for the further analysis. And then it analyzes the status of Lenovo and IBM. As the biggest producer of PC in China, Lenovo has two choices to open up the oversea market: to invest abroad or Cross-Border M&A. After a long time argumentation, Lenovo decided to rely on Cross-Border M&A. Then, it introduces the process of this M&A, including retaining some top-ranking agency institution, evaluating the value of Target Company, choosing the mode of payment and avoiding some problems referring to politics. In the end of this part, it analyzes and summarizes the result and meaning of this M&A.Part four concentrates on Lenovo post-merger integration which is systematical and professional work. Lenovo cannot treat it lightly, because the integration plays a very important part for the success of M&A. as we know that Lenovo faced many problems after its Cross-Border M&A. Such as financial risk, the loss of clients and employees from IBM, how to set up its brand, how to avoid the conflict between the Lenovo and IBMPC and so on. In succession, it will have a detailed analysis. In the end of this part, it introduces the effect of Lenovo's integration.The last Part is about advices. It can be seen that we can learn a lot from this Cross-Border M&A. It will attract many Chinese enterprises to practice their Cross-Border M&A. These suggestions will be helpful for those enterprises who want to have Cross-Border M&A. It's a good way for a company to enlarge itself, but it must pay more attention to Cross-Border M&A. After all, it's so hard to succeed.Finally, the main contributionFirstly, as it has been mentioned in this thesis, there is not enough information about Cross-Border M&A. As for the research of example, it refers to fewer. This thesis takes the Cross-Border M&A of Lenovo as an example to have a detailed discussion. Secondly, it put forward some new ideas about this Cross-Border M&A. I think that there is much experience to study regardless that Lenovo will succeed or fail.