Comprehensive Assessment And Management Of Recycling Is The Cornerstone Of M & A Success

Driven by the tide of global economic integration and technological innovation, mergers and acquisitions have become a major means of enterprise expansion and pursuit of economies of scale. But empirical studies prove that the success rate of Merger and Acquisition (M&A) is not high. Investigating the reasons, there is lack of due diligence before M&A, bidding disadvantage in negotiation, not success in process of reconstruction after M&A, and the cultural differences. In this paper, the author analyzed the first-hand experience of one successful case of M&A, and summed up the experience.The author thinks that a set of suitable system for comprehensive evaluation of the acquired enterprise is the precondition for the success, which specifically includes the assessments of product value and enterprise value, assets and capital, and the relationship between resources and risk.Secondly, the author believes that the integration and reconstruction are the basis of successful mergers and acquisitions. Integration includes the strategy, organizational structure, human resources and cultures. Reconstruction is to establish the management system in line with the company’s development strategy, finance, human resources, quality and information.The author focuses on the three aspects in enterprise M&A:assessments, integration and reconstruction; from which to extract the several common issues of concern.