The Financial Synergy Effect Study On M&As Integraiton Of Chinese Enterpirses

As the development of capital market and world economy，M&A in our countrywill be more and more active. Mergers and acquisitions have become importantmeans of enterprise capital expansion and optimizing the allocation of resources.Although today’s enterprise M&A wave, and encouraging high compared to a hugenumber of mergers and acquisitions mergers and acquisitions amount and case, thesuccess rate of M&A is not high. One of the important cause of the failure of themerger and acquisition is M&A and finance related problem has not been effectivelyimplemented.Financial synergy effect is refers to financial effect that merger brings to theenterprise. This effect is one of the main motivations of mergers and acquisitions aswell as the key to success for mergers and acquisitions. Therefore, the study offinancial synergy effect is conducive to the implementation of the strategy of M&A inour country and to further improve and enhance the M&A financial synergies. Basedon geely’s acquisition of Volvo case analysis study of financial synergy effect isconducive to the implementation of the strategy of M&A in our country, and furtherimprove and enhance the M&A financial synergies.This paper mainly adopts the method of theoretical research and researchmethods of case analysis.From the point of structure, this paper is mainly divided into five parts. The firstpart is the introduction where the search background and significance, The relevantdomestic and international literature review, the research methods, research contentand innovation are mainly introduced.The second part is the analysis of the theory of enterprise merger integrationwhich leads the core issue of this paper-the financial synergies by explaining thetheory of M&A and synergistic effect of M&A. The third part is a study of the financial synergies which caused by M&Aintegration.In this part, the main performance and generate conditions of financialsynergies are described, and the necessity of the financial integration after the mergeris proposed which lay the theoretical foundation for the following case analysis.The fourth part is the Analysis of Youku acquisition Tudou case, mainlyintroduced the operation of two companies, M&A background and motivation,post-merger consolidation process and financial risks that may arise. Analysis theachievement of financial synergies through comparing the Indicators of financial dataand operating conditions of a few years before and after the Youku ’s acquisition.The last part is the existing problems and Suggestions. In view of our countryenterprise after M&A realize these problems that exist in the financial synergies andthe suggestions to enhance the synergistic effects of mergers and acquisitions offinancial.