Merger And Acquisition Of TUV And LGA

Under the market economy in China today, the competition between enterprises in various sectors are becoming increasingly fierce. Merger and acquisition is one of most important relationship of business connection. If the merger is successful, then it will make the success for combination of both previous individual companies:reduce the competitors, lower the reset cost and form the scale effect etc. But oppositely, if the merge fail, then it will cause huge increase of the management fee, make the company fall into a desperate condition which may also cause a lot of negative result:the drop of the enterprise capability of the previous one, big loose of the staffs, also flare-up the contradiction inside the company. This thesis will tell a real case about TUV Rhineland (shanghai) ltd (named TUV in the below) and LGA (Landesgewerbeanstalt)(named LGA in the below) to compare the difference before and after the merger. And the author will focus on the management of transaction cost to analysis both before and after and find the different type of transaction cost for different stage and the reason behind. Finally, come to the conclusion that after the merger, the company must focus on integrating corporate culture, adjusting the organization structure, regulating and control the human resource, increasing the enterprise brand to cut down the high management fee, so as to achieve the effective transfer of assets between the two companies and integration.