M & A Integration Management

English AbstractThe shift from the central planed economic system to the socialist market economic system has given a great impetus to the reform of the state-owned enterprises (abbreviated as SOEs). But on the other hand, a number of SOEs ran into difficulties and some even ran into bad or vicious circulation of their operation. Is there any way out for the SOEs? Merger & Acquisition (abbreviated as M&A) is an important approach to restructure enterprises' assets and reallocate social resources, and witch can further promote the development of the well-operated enterprises, can give a big push to the poorly-operated ones. This can be one of the outlets for the SOEs to get rid of the dilemma. M&A can help to develop competitive systems and operational environment, to liquidate and restructure assets in stock and to improve the allocating efficiency of resources so as to adjust and better the structure. The success or failure of M&A, to a large extent, is determined by the consolidation management after M&A. Presently, most of M&As in China focus only on account adjustment and just a small number place emphasis upon consolidation. So that enterprises cannot make full use of coordination effect (1+1>2) after M&A. Some even become deteriorated. Therefore, consolidation management should be paid much attention. Being interested in this, I would like to explore the possibilities of providing some enlightenment and suggestions in this thesis for the M&As in China for their consolidation management.The thesis is divided into five parts.The first chapter is introduction. Following the discussion of the general concepts and the cause of M&A, the good effects upon the society are elaborated and a short history of M&A in western countries is given. From the later years of the last century to the present, here are already five rounds of large-scale surge of M&As, have happened, concurrent with many failures. Most of them are caused by the poor consolidation management. The second chapter concentrates on M&A and the consolidation management after M&A. Consequence of the consolidation management, economic characteristics and types of consolidation tactics are discussed in this chapter. The third chapter focuses on the specific contents of the consolidation management after M&A. The contents of strategic consolidation, operational consolidation, managerial and systematic consolidation, organizational and personnel consolidation and cultural consolidation are elaborated in detail. The fourth chapter offers a case analysis of the consolidation management after M&A. Through the analysis of the successful consolidation of Wulwors, some general rules about the consolidation management are deducted as follows: firstly, in order to insure the success of the consolidation, the buyer must make deep investigation about the target enterprise before acquisition. Secondly, the quicker the capable managers are appointed to the target enterprise after M&A, the better. Thirdly, a series of consolidation plans with specific aims and clear way of thought should be made. Fourthly, during the process of consolidation, the element of human resources should be emphasized. Fifthly, cultural consolidation should play an important role in the whole operation of consolidation. Last but not the least, encouragement to personnel should be greatly emphasized.The fifth chapter provides some suggestions about M&A in China from the perspective of consolidation after M&A, based upon the analysis of the history and the current status of M&A in China.All in all, consolidation management after M&A is multi-level, full of variable complexities. Only when comprehensive consolidation from different aspects such as strategy, operation, management, personnel and culture is made, can coordination effects be made full use of and the whole scale benefit can be gained.