Research On The Effect Of Strategic Integration On Financial Performance For Company L Overseas Acquisition Of Company M

M&A is a strategic approach that companies choose to use their own certain assets to obtain the right to operate and control the target company in order to achieve further development under the guidance of the strategy,to achieve the expansion of production scale,the extension of the industrial chain,and the increase in market share.At this stage,many domestic companies have started to carry out mergers and acquisitions plans,and the number of mergers and acquisitions companies is also increasing.Overseas mergers and acquisitions,with their increasingly significant advantages,have quickly become a key means for Chinese companies to invest overseas.With overseas mergers and acquisitions,the effective integration of resources can be realized,and foreign companies can enter the foreign market within a short period of time to improve their competitiveness and obtain more advanced technologies so that the operating costs of enterprises can be effectively controlled.However,mergers and acquisitions are not an easy task.It needs to involve very complicated contents in all aspects and is a holistic system engineering.From the initial selection of the target company,to the merger and acquisition,and then to the integration,not only involves the company's assets,but also involves culture,manpower and other aspects.Through numerous cases,it can be found that mergers and acquisitions are risky,and the risk of mergers and acquisitions is extremely high.The impact of mergers and acquisitions integration on corporate performance,especially financial performance,cannot be ignored.In 2004,L company officially began to carry out mergers and acquisitions,and continued to plan for mergers and acquisitions.In 2004,L company smoothly achieved the company's PC business mergers and acquisitions.In the following years,it also acquired German M company,Brazil C company and American M company.In 2014,Company L again acquired a number of business units of Company I and acquired Company M in the same year.The L company mainly wanted to take over the overseas mobile phone market share through the acquisition of M company,and then achieve further growth in its financial performance.From the initial determination of the M&A target to the current three years,how does the M&A performance of the M&A target be affected by the specific impact of strategic integration,and how are the short-term and long-term financial effects? Did you achieve the first merger? These are questions that deserve further study.This article uses the case study method,taking the basic situation introduction of M company M company L as a starting point,using SWOT and PEST tools,in-depth study and analysis of the value of its overseas merger strategy integration,using the relevant data of the past 3 years,analyzed this time The impact of overseas M&A strategic integration on financial performance and impact on non-financial performance,with emphasis on the impact on financial performance.The article adopted a three-year research and analysis of the company's acquisition of company M in 2014 to show that L's M&A activity did not achieve good short-term performance and long-term performance did not achieve satisfactory results.The existing obstacles and constraints were analyzed and summarized,and their roots were found.Through their analysis,they put forward their own suggestions,mainly including the adjustment and implementation of strategy after M&A;strengthening the precautionary measures against the financial risks of overseas M&A and improving the financial performance after M&A.Performance and non-financial performance measures.It can be expected to accumulate experience for the company's subsequent decision-making,and it will also serve as a reference for other companies' M&A activities.