The Analysis Of Synergy Effects Of Cross-border M&A

In recent years,more and more domestic companies have initiated cross-border M&A for reasons such as seeking resources,avoiding trade barriers between countries,and seeking international development.However,according to data from Dealogic,in the past five years,half of the active acquisitions initiated by Chinese companies ended in failure.Among the successful companies,about 60% of cross-border M&A were almost unsuccessful.As one of the main motives for companies to implement M&A,many scholars believe that synergy effects can better measure the success of M&A than a single financial performance.This article selected Lenovo acquisition of Motorola as a research case.It first elaborated the background of M&A,analyzed the causes of M&A,and summarized the integration after M&A.Then use related indicators to assess whether Lenovo has achieved synergies with M&AIn addition,this article also analyzes whether the company obtains the synergy effect from the perspective of the company's strategic goals,and uses non-financial indicators such as smart phone shipments,brand awareness,etc.to evaluate whether the company obtains the synergy effect of intangible assets.Through these analyses,this article finally found that Lenovo's acquisition of Motorola did not achieve synergy.Because this merger is very similar to the case of Lenovo's acquisition of IBM PCD in 2004,compare two cases for comparative analysis.Through comparative analysis of the two cases,lessons were learned.There are four main reasons for the failure of this merger and acquisition: First,there is no adequate preparation before the merger;Second,the strategic planning of the company after M&A is chaotic;Third,Lenovo failed to integrate Motorola's resources successfully;fourth,Lenovo's transition relied on successful M&A experience in the past,ignoring the difference between PC and smartphone industry.Finally,I hope that other companies intending to implement cross-border M&A can take warning...