A Study On Synergy Problem After The Merger And Acquisition Of Company Y And Company W

With increasing market competition,M&A have become an important business activities to expand product market shares,enhance corporate value,realize corporate strategic reorganization,adjust industrial structure,and expand corporate scale.The emerging technology industry is booming,and the industry has a lot of market space.Previously,the domestic market was occupied by foreign-funded enterprises and joint ventures.At this stage,affected by international trade tensions and the epidemic,many companies have begun to take the route of localization.It is a good development opportunity for enterprises,and the period of independent research and development of products and testing and verification is relatively long,and the construction,recruitment,and operation of factories require a lot of time,manpower,resources,and material resources.The enterprise seeks to be faster It is a good choice to occupy the market locally,and implement vertical M&A of upstream companies based on the actual situation of the company and the market environment.However,M&A are risky.Studies have shown that the success rate of M&A of foreign companies is less than 50%.According to KPMG’s research,about half of the companies’ In the next year,nearly half of the senior executives of the acquired company chose to leave.From the fourth year after the merger,more than half of the company’s performance of the acquiring company will no longer grow.Therefore,the author believes that the key to a successful merger It lies in the implementation of effective integration and synergy after M&A.The author has worked in Y company for more than 10 years.This article uses the actual case of Y company’s vertical merger and acquisition of W company as the material to study the synergy problems that occurred after Y company’s vertical merger and acquisition of W company,and put forward countermeasures and suggestions.This article first introduces the background and significance,research ideas and methods of research on synergies after completion of M&A;combs the theories related to M&A synergy,such as the merger integration theory,synergy theory,etc.,and establishes the theoretical basis for the research;,Focusing on the industry background,actual operating conditions,reasons and process of M&A of the acquired company Y and the acquired company W;then,it reveals and analyzes the problems that the company Y has encountered after the vertical merger of the company W and the reasons for these problems;On this basis,using the relevant theories of M&A,countermeasures and suggestions are put forward for the coordination problems that arise after M&A.It is hoped that through studying and sorting out this case,it can provide reference suggestions for other companies that need to conduct vertical mergers and achieve synergies.It is hoped that through the study and sorting of this case,it can provide reference suggestions for other companies that need to conduct vertical M&A.