Research On Issues In M&A Of Multinational Corporations

With the influence of global economic integration many multinational enterprises grew up through the merger and acquisition(M&A).A lot of researches indicate that many enterprises would like choosing M&A,because it becomes the best way to achieve rapid expansion.Based on lots of successful and unsuccessful M&A case analyses,people knows M&A is a high-risk work and whether M&A successful is caused by successful M&A integration.W elevator group was an old Germany enterprise established in 1968.Study from the history of W group,we knew it was an out-and-out enterprise developing from M&A.The founder Mr.W achieved many successes in M&A and he also failed in M&A.In 2002 Mr.W had to sell his enterprise due to the Fund Chain Break which caused by failure of M&A.Nowadays after several times of transaction Bain Capital(American Investment Corporation)becomes the boss of W group.After the purchasing happened W group met the world economy sag,the continued downturn in trade,the intensification of financial market turmoil and the European debt crisis and so on.Under the background of these factors,continuous global sales decline and less increasing driving,W group had the idea using M&A to achieving expansion.Therefore,they purchased S group in the end of 2015,who was also an elevator component enterprise.In order to make the M&A work successful,W China started to integrate the Chinese factory of S group,which demanded by W group.W China was an earliest enterprise established in 1995 in elevator component industry.W China had achieved very good development within more than 20 years since its establishment.Because sales revenue of W China decreased for the first time in 2016,W China suffered a big market pressure.Responding to group call and in order to its self-developments,the most important work on front of W China is how to integrate S enterprise well.After description of problems about M&A integration,this thesis made a lot of analyses on inside and outside environments of W and S Chinese enterprises with some analysis methods such like PEST model,SWOT analysis tools,Porter's Five Forces Model.Meanwhile,we also made a lot of researches on M&A integration plan by combining theories of M&A,M&A integration,Efficiency and Synergy Effects.Then we gave some suggestions which from some aspects such like Strategy integration,Organization integration,HR integration,Sales and Marketing integration,Technology integration,Operation integration,Enterprise culture integration and Financial integration.Here we recommended a method of Career-smart Balanced Score Card to analyze the integration results.We also discussed the key points of M&A integration plan emphatically and provided the safeguard measures for the implementation of M&A integration plan.