The Integration Pattern Of Goal-Company Based On The Cross-Border M&A

Ever since nineties of the20th century we are facing the peak of globalCross-border M&A, the development of technology and global economy build up astrong power to drive this economic phenomenon to a new level that we never seenbefore. In contrast to previous expectation, however, the rate of success is not very high.Many enterprises did not meet their original goals. The root-reasons of the fai1ure arenumerous but the most important one is that the post-merger integration is not suitableenough which cause many problems in strategy, organization, corporation culture,finance and human resource between M&A companies and goa1-companies.Facing the problems of post-merger integration, especially take the vive of thegoal-company, this paper aims at the improvement of the over-all competence in thegoal-company. Firstly, through deep analysis of the concept of Cross-border M&A andthe reason of the six world-wide waves of M&A, this paper pointed out the necessity ofpost-merger integration by goal-company. Secondly, combined with the case ofAmerican UTC and China GST merger, this paper also discussed every aspect ofpost-merger integration, such as the strategy integration, organization integration,corporation culture integration, finance integration and human resource integration.In the1ast, the paper put great emphasis on the discussion of how to evaluate theefficiency of the integration by goal-company based on the Cross-border M&A. TheExperts Grading method and the Analytic Hierarchy Process method are used to build theweight of the evaluation index. At the same time, the Fuzzy Comprehensive Evaluationmethod is used to measure the efficiency of the integration by goal-company. Taking thereal case of American UTC and China GST merger as an example, verify the establishedintegration pattern and make future improvement suggestion.