Research On Financial Integration After Merger And Acquisition

Mergers and Acquisitions is a result of market economy. The market economy is more developed, the enterprise Merger and Acquisition occurs the frequency and the scale will be bigger. Successful M&A can enhance a enterprise's competitiveness and boost the operation efficiency of the business assets. However, the enterprise M&A is not a simple combination in figures with the two enterprises. As was shown by some investigations, though merging occurs more and more frequently, the number of successful merging cases is not directly proportional to that. The main reason for this is the incomplete merging, especially the incomplete merging of financial affairs and management. Under this circumstance, based on the previous research and study, this paper is intended to further discuss the financial integration after M&A. This paper is divided into five parts. The first part is the introduction, introducing the background of this topic, the significance, the purpose of the research and the method of the research and gives a brief account of basic theories of financial integration and the present research into this field at home and abroad. Second part, reasons which led to the failure of M&A is analyzed. After the related theories studied both in China and abroad, Integration is proposed according to the materials mentioned above. Part three and part four are the most important part of my paper. The third part has analyzed the basic theories about financial integration, such as the necessity of financial integration theoretical basis, pattern and content. The fourth is concrete study of the previous part. It includes discussing the internal and outside financial relationship. At the end of the paper, I discussed that the key of a successful enterprise merger includes the through evaluation for the business before the merger, financial control after the merger and the fast integration. It is hoped that this paper can offer practical operational reference concerning the integration for the business M&A, bring down the integration cost and raise the chances of M&A success.