The M&a Performance Between AVAYA And Nortel Networks

Study on acquisition performance evaluation of current academic communication industryis lacking. In this context, study on performance evaluation of AVAYA company mergers andacquisitions has very important theoretical value and practical significance. By AVAYA Nortelnetwork case study and analysis of global merger and acquisition, communication is still in itsinfancy in China Enterprise improving international competitiveness provides referencereference. Paper reference relevant research results at home and abroad, with corporatemerger and acquisition theory as the Guide, to elaborate the AVAYA overview of merger andacquisition of Nortel Networks, including merger and acquisition enterprises and analysis ofcharacteristics and situation of the industry, and an analysis of the motivations, actions andimpacts of the merger, and the use of SWOT analysis method, on the situation of AVAYAcompany after merger and acquisition has done a comprehensive analysis and evaluation.Based on improving profitability, product integration, technology upgrading, expandingmarket share and diversification motivation, AVAYA-Nortel Networks were mergers andacquisitions. In the process of mergers and acquisitions, experienced risk assessment andcontrol, management, production and market consolidation, and to take necessary safeguardmeasures, achieving smooth merger. Built on the basis of the above is based on acquisitionperformance evaluation index system of financial indicators, using municipal financial data,on AVAYA company mergers and acquisitions of various financial indicators before and afteranalysis of the change, to evaluate its acquisition performance, and make recommendationsfor countermeasures to improve the debt-servicing capacity. By financial index system onAVAYA mergers and acquisitions North electric network performance for of evaluationanalysis, came after mergers and acquisitions, to total assets turnover and liquid assetsturnover characterization of AVAYA company of trading ability obvious improve; to assetsliabilities rate and flow ratio characterization of claims debt ability decline, liabilities ratereached higher level, may will effect company of continued operating; to assets net marginsand each unit income characterization of profit ability basic keep and has upgrade potential.From acquisition performance evaluation found that AVAYA company after the merger thereis a decline in solvency problems, this has affected the company’s credit rating, and will further restrict their sustainable development, should take the reasonable control of asset-liability ratio, adjusted debt structure, rational use of financial leverage comprehensivemeasures to enhance the debt-servicing capacity.