M & A Value Assessment And Post-merger Business Integration

Enterprise mergence and acquisition (M&A) forms a process and result that is inevitable to ensure its survival and prosperity in the background of market economics. Some developed countries have completed the update of industry and optimization of resources through massive M&A to intensify competitiveness of enterprise since the beginning of last century. In our country, M&A becomes gradually active in the development of market economics in recent years and it also acts as a way to accelerate growth of business. However, through a series of case studies of M&A, we begin to notice an acute problem-low rate of survival after M&A. We deem the failure of operation of newly formed enterprises can be attributed to two aspects: miscalculations of the value to aimed corporation, non-effective strategy taken to manage integration process after M&A. This thesis just makes discussion about how to resolve the problems mentioned above and formulates the way to smooth the process of M&A.This thesis can be divided into four parts.The first part acts as a preface to formulate that the proper value evaluation and integration management is of essential importance to the success of M&A and generalizes the theories and developments in this field in China and abroad. The second part details the methods of evaluation to aimed corporate during M&A. Firstly it formulates the basic theory in corporate evaluation which includes the meaning, features, basic assumptions, basic procedures of M&A. Then it draws the description about fundamental methods in evaluation such as discounted free cash flow of enterprise, EVA (economic value-added) evaluation, relative value evaluation and material option evaluation. At last it makes comparison between discounted free cash flow of enterprise and EVA (economic value-added) evaluation through case analysts.The third part: the integration after M&A. It formulates the strategy integration,culture integration, organization and HR integration, management and system integration and finance integration respectively.The fourth part: the end. It generalizes the whole thesis.The wave of M&A is going to spread gradually due to expectation of experts that China is about to see massive scale of M&A in a recent few years in the background of economy translation. So it is essential to research problems arising from these two fields: evaluation to aimed enterprise and integration management, which are the key factors to the success of M&A.