Research On Super Large IT Corporation Merger And Acquisition Risk Control Strategy

Entering into 21^st century, M&A become much popular in IT industry. In 2001, HP acquired Compaq computer, then in 2005 Lenovo merged IBM personal computer division, IT industry is becoming more centralized. As a special kind investment activity, Merger and Acquisition is a double edge sword, not only profitable but risky.This article starts with introducing the concept of Risk of M&A, then tries to divide M&A risk into two categories: system risk, which is the risk inherent in the market, and the non-system risk, which is a risk a specific company can enable control. System risk consists of Legal risk and market risk; and Non-system risk is composed of strategic risk, financial risk, anti-acquisition risk, operation and culture integration risk.Then this article tries to analyze the global M&A cases of H Company and elaborate the 3 step risk control tactics which is engaged by H Company during M&A process. On top of this, to better managing and controlling risk, improving M&A performance, the author tries to contribute some personal ideals with regard to how to control integration risk, aiming to give some useful inputs for China local IT company when they doing overseas M&A.