The Analysis Of Integration Risk In Overseas M&A Based On Technology Absorption

At present,China’s manufacturing enterprises are in a critical period of transformation and upgrading,and the lack of core technologies is the main reason why China’s manufacturing industry lags behind the world’s manufacturing powers.The main ways for enterprises to acquire core technologies are independent research and development,technology purchase and technology acquisition through overseas M&A.But the long periodically of independent research and development,low conversion rate of technology purchase,in comparison with overseas M&A can make the enterprise to obtain technology value creation in a shorter time,this is also the main reason of most enterprises to choose overseas M&A.But overseas M&A is not a simple economic activity,it needs to consider internal and external environment and other aspects of the enterprise.According to the existing M&A data,the success rate of overseas M&A is not high,which is mainly due to the lack of understanding,attention and measures on the risks of M&A integration,and when the M&A activity combined with the purpose of technology absorption,is undoubtedly to added a risk to M&A.Therefore,in order to achieve the expected effect of M&A,enterprises must effectively control the integration risk in M&A.The article mainly applies the literature research method,case analysis method and AHP to study the integration risk of overseas M&A based on technology absorption.Firstly,based on the theories of overseas M&A integration,control integration risk and technology resources integration,this paper makes a certain analysis on the current status of domestic enterprises’ overseas M&A,studies the integration risks of overseas M&A based on technology absorption as well as their characteristics and difficulties.Secondly,taking the case of Midea merger KUKA to conduct in-depth analysis,identify case’s integration risks base on the macro and micro,establish the corresponding risk hierarchy model,use AHP to carry out quantitative analysis on each integration risk factor,and calculate the impact of each integration risk factor on M&A activities.Finally,according to the evaluation results,put forward risk prevention measures,and how should the enterprises control the integration risk of overseas M&A based on technology absorption,optimize the technology integration strategy,and truly achieve the purpose of technology absorption.Through literature research,this paper identifies the common risks in the process of technology-absorbing overseas M&A integration,analyzes the integration risks in the case of Midea merger KUKA,and proposes the risk control measures with reference significance,which is helpful to enrich the overseas M&A case database from the integration risk control dimension.