A Study On Brand Integration Of Mergers And Acquisitions

Since 19 centuries, the Western countries have already experienced M&A waves for five times. M & A activities in China developed vigorously with the development of capital markets. Enterprises achieve the business expansion,and scale management by mergers and acquisitions, which has become the consensus of international corporations and entrepreneurs.M & A can indeed achieve a variety of positive effects, such as synergies, reducing transaction costs, economies of scale. In reality, companies do have a profit in the M & A. But at the same time, we also clearly see that at least 50% of mergers and acquisitions do not achieve the expected results. After M & A, enterprise business grow slowly or even grow negatively, and business performance continued to decline. The purpose of this paper is to explain differences of M & A effect, and to provide suggestions on M & A. The explanations before this article consider that the failure of M & A is caused by the lack of management integration, so the studies of M & A focus on integration of business strategic management, integration of human resources management and integration of financial management. This article will explore differences of the effects of the M & A from the perspective of brand economics.This article will prove that the brand credit degree is an important factor which can influence the effect of M&A. And the brand credit degree is influenced by the brand integration policy which is taken after M&A.Article is divided into seven parts:the first chapter is an introduction.The second chapter is literature review,summarizing the existing theories about M&A motivation,and reviewing the existing theories about brand integration. The third, fourth and fiveth chapters analysis each brand integration mechanism, and derive the general conditions of application. The sixth chapter is the case study, the seventh chapter is conclusin and outlook.