From The Perspective Of The Internal Control Theory, Corporate Mergers And Acquisitions Integration

Just at the end of the Two Sessions of NPC and CPPCC, Premier Wen JiaBao made it clear that" promoting the organizational structure of enterprise restructuring and M&A vigorously." in his State Department report. In the competitive market, enterprises must continue to grow stronger in order to survive, so M&A is necessary and economically feasible.However, M&A will inevitably lead to a wide range of issues. Those unstable factors brought by M&A are not only the driving force of reform and adjustment, but also the challenge and request of management. There is a big gap between the developed countries and China in the themes of mergers and acquisitions, which related to the short history and less experience of China. According to incomplete statistics, the truly successful cases of M&A in China are less than 10%, which result in too much interference from the government, the imperfect securities markets, not fully developed regulations of M&A, and so on. Of all, the most important aspect is the indifference of management after the integration of mergers and acquisitions.The automotive industry is one of the key industries of integration of M&A in the State Department report this year. From the study of several typical M&A cases, I found that the integration of M&A is a general trend and even more inevitable.According to above, this paper divided into four chapters, Chapter 1 gives out the concepts and connotations of corporate M&A and integration; Chapter 2 discusses the analysis on enterprise risk of M&A in China; Chapter 3 is based on two typical automotive industry cases of M&A, reviewing and summarizing the corporations' histories and current situations in China; Chapter 4 proposes the internal control theory, and uses it as the point of view, analyzes the difficulties of integration of M&A; carries out some countermeasures.