Analysis Of Synergistic Effect Of L Company Merging B Company

With the development of Chinese economy and the change of market competition environment,more and more domestic enterprises have carried out the "going out" strategy to integrate international resources,circumvent the trade barriers between countries and seek the development space of international market.Among them,transnational M&A is one of the important ways to realize the "going-out" strategy of Chinese enterprises.It is also an effective means for enterprises to expand their market and enhance their strength.For an enterprise,the completion of cross-border m&a is just the beginning,doesn’t mean that m&a is successful,to inspect the effect after the merger,many scholars believe that simple with a single financial index to judge the effect of m&a is not accurate,and introduce the synergy effect of m&a evaluation,can more accurately measure the success or failure of mergers and acquisitions.Therefore,how to realize the synergy effect of M&A has great theoretical and practical significance for the effectiveness judgment of M&A activities of Chinese enterprises.This paper takes the acquisition of Company B by Company L as the case basis.Firstly,it analyzes the basic situation of the two enterprises,the motivation and the process of merger and acquisition.Secondly,it studies the synergies of L Company’s merger with B Company from three aspects,including operation,management and finance.It analyzes the operating synergies based on the analysis of market share,sales ability and research and development.It analyzes the management synergies based on the analysis of personnel management,cultural integration and operation ability,and analyzes the financial synergies based on the solvency,profitability and assets and liabilities.Finally,the research shows that there is no obvious synergistic effect in the short and long term after the merger of Company L and Company B.Aiming at the analysis of the reasons for the failure of synergistic effect,it provides certain reference and enlightenment for Chinese enterprises to achieve successful cross-border merger and acquisition.