| dc.description.abstract | Mergers and acquisitions (M&As) have the characteristics of relatively small investments and low risks, coupled with quick turn-around. Thus, in the endless cycles of pursuing survival, growth, and sustainability, many businesses have turned to M&As .
However, M&A is a complicated and highly professional investment activity. In depth knowledge is needed during the assessment and execution stages, which implies a high degree of financial and intellectual challenges. In addition, M&A combines high-risk and high-return. The hidden risks, such as information risks, operational risks, financial risks, legal risks, etc., all challenge corporate management’s wisdom and courage.
The target of this study, Company C, was established as a trader. It has engaged in various acquisition activities, and has evolved into a conglomerate with manufacturing capabilities. However, many of these M&A cases were failures that did not lead to expected synergies. Some have even resulted in losses due to improper integration and development, and have become heavy burdens for the acquirer.
This study took the opportunity that Company C is in the process of acquiring Company S, and conducted a due diligence on the Company S, and also to provide recommendations in developing any integration plan for the acquirer. This study did an in depth examination of the target from various aspects, including financial, operations, and R&D. Many problems were identified and analyzed. The conclusion of the due diligence was a “No Go” based on the long term interests of Company C. At the end of this study, a follow-up of the actual decision and the development are provided. | en_US |