Research On Cultural Integration Of Corporate Merger & Acquisition

As the development of economic globalization and the drastic competition of market, enterprise merger and acquisition (M & A) has played a significant role in expanding the scale of the enterprise and enhancing the competitive power. Since the 1990s, one wave after wave of worldwide enterprise M & A has been surging. However, in most cases of the enterprise M & A, few of them succeeded in achieving their goals, about sixty five percent of the M & A enterprise practices by the enterprises managing international business were proved to be unsuccessful owing to acquiring no expected synergies and financial returns. In analyzing the reasons of failure of M & A enterprise, some research results indicates that some of the most important reasons for the failure of acquisition are the ignorance of the cultural difference between merged enterprises, the failure of properly resolving cultural clashes and the lack of efficient cultural integration. In order to smooth the implementation of the corporate M&A, this paper explores the factors that affect the success of mergers and acquisition, analyze the main modes of M&A and established the mechanism of cultural integration. It provides a theoretical guidance and practical operation for the current M&A cultural integration.This paper uses empirical research combining theoretical study, qualitative analysis with quantitative analysis method, focusing on the three following aspects:first it analyzed the choice of four main modes of cultural integration and their impact factors; secondly it established the mechanism system of cultural integration and described the sub-mechanisms in details. It also takes an example to prove the executing of practice situation. Finally, at the base of all the work, it figured out how to improve the performance in cultural integration of M & A issues raised by the effective recommendations and measures.