Main Factors Affecting Our Country Enterprise Merger And Countermeasures

According to the "2015 Statistical Bulletin of China’s Outward Foreign Direct Investment",in the year 2015,China’s outward foreign direct investment achieved a historic breakthrough. For the first time, China experienced net capital outflows from the two-way foreign direct investment, which shows our country enterprises "Go Globally"strategy had the new breakthrough. Since the 1980s, our country enterprises transnational merger and acquisition cases has emerged in endlessly, but the rate of successful companies is low so far.In this paper, the transnational merger and acquisition process was divided into two periods: before mergers and acquisitions and after the mergers and acquisitions.Summered up the factors that affects the failure of China’s enterprises transnational mergers and acquisitions. Before the acquisition, political factors, government intervention and environment may influence the results. On the other hand, the enterprises ignore the responsible investigation and the transaction process. After the acquisition, the integration is very important. In the financial integration, the main reasons including the target is not clear, no plans and measures. In the personnel integration, the main reasons including Ignoring the feelings of employees and top-level talents,lack of employee evaluation system、lack of effective retention measures and lack of compensation policies and employee incentive plan. In the cultural integration, many companies pay little attention to the difference of the two companies, the difference of two countries. All in all, these factors might result in the failure of the merger and acquisition.In the same way, summarized the countermeasures. Before mergers and acquisitions,country and government should share our market equally as well as developed countries,improve cross-border merger and acquisition protection measures and perfect the relevant legal system. During the process of transaction, enterprises should do full investigations of the target company and choose appropriate financing and payment avoiding the debt crisis. The integration is the key to success.In the financial integration,enterprises should on the basis of the existing financial system rebuild the new one and set the new the financial management goals. In the personnel integration, more importantly, communicating with employees effectively and formulating human resources planning to retain the top talent of company. In the cultural integration, finding the culture between the two sides in common, respecting the culture of each other and struggling for the same goals.