Research On The Synergy Effects Of Transnational M&A In Enterprises

In recent years,with the implementation of China's “going out” strategy,the role of cross-border M&A in foreign investment has become increasingly important.At the same time,for Chinese enterprises,cross-border mergers and acquisitions can absorb advanced overseas technology and management teams,which have a positive effect on opening the market and improving the competitiveness of enterprises.However,after the merger and acquisition of overseas companies by many Chinese companies,the results of mergers and acquisitions are not satisfactory due to the inability to produce synergies.This needs attention.This paper firstly explains the background and significance of the topic selection,and then systematically sorts out the domestic and foreign related literature about the synergies of mergers and acquisitions.Then it describes the definition and classification of the synergistic effects of cross-border mergers and acquisitions and mergers,supplemented by related merger and acquisition theory.Build a basic framework for later analysis.After that this article summarizes the current development status and existing problems of the LED industry market,and the Chinese company's motives and the characteristics of mergers and acquisitions,pave the way for the case analysis.Combining the status of the industry with the case,we conducted a comprehensive and in-depth analysis of Leyard's acquisition of Planar in the United States,this study compares and evaluates whether the merger has achieved synergies,focusing on the three points of business synergy,management synergy,and financial synergies.The analysis uses a combination of quantitative and qualitative research,and quantitative studies were compared with the industry average and the competitors Absen which disclosed by the Leyard report.This article believes that Leyard's acquisition of Planar meets the company's strategic development needs and,overall,it has achieved good results.From the perspective of the operation and management synergy,the company has a certain degree of improvement in terms of profitability,development ability,period expenses,and efficient use of asset.However,there are deficiencies in the financial synergy,which is mainly due to thecompany's expansion and resulting in reduced current assets.Based on the analysis and conclusions of the case,we have obtained a number of meaningful inspirations:(1)In view of the company's perspective,the company should combine the company's development strategy and rationally select the merger and acquisition target;pay attention to the prevention of legal risks,hire relevant intermediaries;strengthen integration after mergers and acquisitions,improve The integration process fully realizes the synergy effect of mergers and acquisitions.Enterprises should avoid blind expansion.M&A may have a positive effect on the short-term benefits of the company.However,if there is insufficient attention to long-term resource integration,merger and acquisition failures are very likely to occur.(2)In view of the government's perspective,the government should improve the relevant laws and regulations,deal with the relevant laws promulgated by the countries where the merged companies are located and which are not conducive to the overseas investment of Chinese enterprises;Accelerate the growth of intermediary institutions and attract overseas talents to return to China through the introduction of corresponding preferential policies by the government;Policy support and macro guidance for cross-border mergers and acquisitions.