Research On The Countermeasures Of M&A Integration

In recent years,m&a has become a shortcut for enterprises to achieve rapid business expansion,to optimize the allocation of resources,and to enhance the core competitiveness.The integration after merger is so important that it's related to the quality of the whole process.In 2007,through stock swap absorption,the merger of Torch Group by Weichai Power completed the listing in A-share market and H-share market of china at the same time.By integrating the core assets of Torch GROUP such as high power engine,heavy-duty transmission,heavy axle markets,the company had maintained leading position in domestic market for a long time.The study of this case has a strong reference value for Chinese enterprises' strategic vertical merger projects.Start from the theoretical research of m&a integration,this paper defines the connotation of merger integration,the purpose,motivation,and related strategy,combined with the actual analysis of the Weichai Power acquisition process and the characteristics of Torch Group,including mergers and acquisitions subject,mergers and acquisitions motivation,m&a process,and characteristics of this case,etc.At the same time,with the aid of the annual report analysis,this paper carried on the evaluation of the performance after m&a.The consolidated new Weichai has realized synergies,and built a gold chain in the industry.At the same time,the integration also contained many problems and risks.The first was the obstacle in the product management of Torch Group,which was good at capital operation,as there were many differences on enterprise strategy,management,and cultural conficts between the two companies.There were also financial risks and risks of the lost of senior executives.Around the problems and risks,according to the integration timeline,with the guideline of strategic integration,business integration solutions developing,various policies of human resources integration of retaining talents and suitable managers,strengthening the communication with employees and thus establishing a reasonable incentive mechanism,the whole process may finally realize the cultural integration.In this paper,the author has also discussed the desirability and improvement of the integration process.A successful case of the integration cannot be done without the strong implementation of the integration plan.Weichai Power's strong cultural influence in the integration process leaded to obvious effects.The products oriented business model of Weichai Power and the brilliant capital operation ability of Torch Group in merger and integration came to mutual absorption between the process.The new Weichai Power's following vertical mergers and acquisitions improved the industrial chain in the upcoming development and inspired the expansion of overseas market.But a successful case of integration also needs to be closely connected to the current national policies,and with the according adjustment of development strategy of the enterprise,it may be possible to obtain the considerable development.