The M&A Performance Analysis Of Alcatel-Lucent Based On DEA Method

With the development of global economic integration,the demands of world's major multi-national companies in Merges & Acquisitions are also growing.M&A is an effective way to achieve leaping development target of enterprises,along with the development of the sixth wave of mergers and acquisitions,more and more multi-national telecom companies are joining the M&A army.This paper chooses the M&A event of Alcatel and Lucent in 2006,which is a typical case of telecom company's M&A.Also this paper analyzes the background of M&A event,the motivation of M&A,and selects the input-output index which can reflect the performance value of M&A.With the construction of DEA model,this paper works out the M&A performance value of Alcatel and Lucent from 2003 to 2011.Also this paper finishes the decomposition of the VRSTE and SE of DEA.After scientific analysis,Alcatel's acquisition of Lucent achieves the expected synergistic effect in VRSTE.However,in the scale efficiency,because of the impact of various internal and external factors,this value is decreased.In view of these problems,the author gives his recommendations in keeping the technical efficiency and reversing the scale of the downward trend in efficiency.The recommendations are: keeping the management and quality system advantages,technological innovation relying on Bell Labs;also,accelerate the integration of the new company in market level,stabilize the original customer market,and actively explore new industry customer market,and actively participate in industry consolidation.In conclusion,the main output after the analysis to the M&A of Alcatel and Lucent are as follows:(1)Evaluate the actual M&A performance by using DEA method,study the actual performance achieved by the M&A of Alcatel and Lucent.(2)By the decomposition of VRSTE and SE,and combined with the actual operation status of the company after M&A,gives out the method to improving the value of VRSTE and SE.