Research On Strategic Merger And Acquisition Integration

M&A is an important strategic choice for enterprise growth process. However, research shows that more than eighty percent of the acquisition did not meet relevant targets. According to the research results of the strategic consulting firm Bain shows that M&A failures on a global scale, the reason for the failure of 80%, directly or indirectly derived from the integration after the merger, only about 20% of the reason for the failure of M&A from the pre-trading session. Visible merger integration is crucial for any enterprise, but also the most easily overlooked.Internal control theory is a good framework and tools to address risk management and management control issues. Sound internal controls to ensure that enterprises can effectively integrate strategic acquisitions successful. Conversely, if there is no reasonable and effective internal control, risk of merger integration phase will become uncontrolled, resulting in loss of control of the entire M&A activity, strategic acquisitions expected performance can not be achieved, and this is one of the main reasons of the failure of mergers and acquisitions. Therefore, the use of internal control theory is useful also essential for the company’s strategic merger integration.In this paper, the internal control theory is used. From the perspective of the five elements of internal control, analysis of enterprise strategic merger integration and design related integration strategies, including based on the control environment of strategic merger integration strategies, based on strategic merger integration strategies for risk assessment, based on control activities strategic merger integration strategies, based on the information and communication to integrate strategic merger and strategic merger integration strategy based on oversight.This paper were selected domestic famous strategic mergers and acquisitions successful and failures cases further analyses strategic acquisitions integration strategies were verified, the successful integration story select Lenovo’s acquisition of IBM PC business, Lenovo good internal control environment, effective risk assessment and response measures, accessible information and communication mechanisms contribute to the integration of its personal computer business; Integration failures select BenQ acquired Siemens mobile phone business, since BenQ internal control system has some shortcomings in the control environment, risk assessment, information and communication and other aspects which led to its Siemens mobile phone business integration failure. Based on the integration of success stories and failures of integration analysis shows that a sound internal control to some extent, to ensure the success of strategic merger integration. Companies should pay full attention to when making strategic acquisitions in the integration phase of construction and improvement of the internal control system to ensure the successful integration of acquisitions and improve enterprise management level in strategic mergers and acquisitions.