dc.description.abstract | Enterprises of our country are confronting Low-Profit market and intensely competitive environment. For ensuring profitable growth from the market, many enterprises choose a feasible business model - Merger and Acquisition (M&A). As we know that the benefits associated with synergy for mergers and acquisitions transactions are not automatic. Actually, PMI, Post-Merger Integration is the most essential factor to deliver values and benefits for enterprise involved in an M&As. It would result in M&As transaction failures and enterprise value loss greater than revenues if enterprise fails to execute a post-M&As integration effectively.
The research focuses the impact of effective integration execution in M&A process on enterprise management performance through case study analysis of improvements in entire M&A process, including Business management, Human Resources Management System (HRMS), Structure of Product Costs, Integrated Information System, Integrated Quality Management System (QMS) and Process Data Reporting System. Eventually, we will evaluate this M&A case with financial reporting and statement analysis from 2006 thru 2013.
The conclusion is shown as follows:
1.In the early- stage of corporate merger and acquisition (M&A), customer defections are a major reason why the combined company fails to deliver the benefits associated with synergy.
2.Developing effective integration strategy (i.e. executing communication plan or offering different rewards and incentives) to minimize any problems occur in combined organization after merge.
3.After hearing the announcement of company’s acquisition, its employees were restless and uneasy. The head of human resources personally come and talk with the employees to put them at ease. For retaining key employees, HR professionals have employees re-sign enforceable contracts and sign an acknowledgement that they have read, understood and have no objections to the company’s employee handbook.
4.The integration of different Information Systems (IS) is one of the most critical challenges that companies face during the whole post-merger integration process. First of all, the company has to build up information system (IS) integration in different organizations for various data synchronization.
Based our review of the research, an effective Post-Merger Integration is the key to M&As success Post-Merger Integration, such as strategy , organization design , and talent assessment .
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