Companies Post-merger Integration, Dynamic Control Study

More and more practice and research indicated the greatest risk source is the Post-Merger Integration stage. At present, the Post-Merger Integration study usually concentrates on performance appraisal after integration, and the study on integration process lags far behind the one on integration scheme and its performance. However, in fact, the integration scheme concluded before the merger trade is seldom identical with the performance in merging, for the scheme usually has to be revised in order to keep pace with reality. Furthermore, the present study has not provided effective method to control all sorts of uncertain factors during integration, avoiding integration result deviates from its goal.The Post-Merger Integration of enterprises is shown as a process. The study herein indicates that in order to control the integration, the merger enterprises under incomplete information can reduce the uncertainty to the integration result by setting up Post-Merger Integration (PMI) Dynamic Control System. This control system is mainly made up of dynamic control process and object decomposition process, which are interconnected by the Dynamic Control Index System to form a whole organized system. The system can be smoothed by establishing a matrix organization structure, which operates like this: decompose the goal of integration to reduce the difficulty to control the integration process on the basis of analyzing that enterprises integration stage, introduce a series of dynamic control methods to monitor the change of deviating from the integration goal, and adjust these dynamic methods so that enterprises can recognize the changes in value during the integration, hold the direction of integration, and adjust strategical planning in time, which can help the enterprise to achieve the integration object and reach the target of merger.