The Culture Integration Of M&A:an Analysis And Explanation Based On Controlling The Risk Of Integration

It is a fact that, since the five times of M&A waves, some enterprises gets a good performanceby M&A. However, there are lots of enterprises doesn't get a good performance in M&A, on thecontrary, their performances declines. The laws of M&A reveals that70%was due to the failure ofthe integration of the merge, which70%was due to the failure of culture integration in the cause offailure in mergers and acquisitions. Therefore, the academic and practice focus on the integration ofculture.At present, the academic which researches in this field, based on the fundamental assumptionthat cultural differences results in the confliction of cultural, which responsible for the failure of theintegration of cultural. Based on the hypothesis, this paper analysis's the failure of M&A from theangle of controlling the risk of integration, and takes specific measures to reduce the risk of culturalintegration. This paper thinks, the risk of Cultural Integration can be divided into the first, middleand later stage. By constructing cultural examination model, and using the matching principle tolimit on the conditions of M&A, it reveals the relative size of Integration Risk in M&A, whichunder the different style and the strength of enterprise culture,which can effectively control the riskin the first stage. Through the method of expert evaluation to determine the weight of all kinds ofrisk factors and the different sizes of the risk factors underling the mode of integration, and orderingthe risk of integration model by using the grey correlation algorithm, it can effectively control themedium-term risk. By constructing the personal vision and common vision transformation model,and building a communication system in the organization in order to realize the integration of bothsides vision, it can effectively control the risk of later stage.The meaning of this study is that it carding the whole process of M&A cultural integration, andsolving the problem "how to do" which on the basis of understanding "what it is".