Analysis Of Integrated Management Case Of Gangtai Holding After M&A

With the rapid development of China's economy,mergers and acquisitions have become the most beautiful scenery line in the economic development of Chinese socialist market.Mergers and acquisitions include the corporate behaviors including enterprise combination,acquisition,merger,and asset swap and so on.As the effective tool to revitalize enterprise's stock assets,to adjust the country's economic structural and rationally allocate social resources are being widely applied day by day in the process of China's socialist marketization.Just in 2013,there were 1232 merger and acquisition cases,with increase amount on year-one-year basis of 24.3%,among which,1145 transactions in total disclosed the amount,and the transactions with the amount disclosed were involved with 93.203 billion dollars,with the increase by 83.6% compared to the same period of the last year.However,mergers and acquisitions is a double-edged sword.The practical truth suggests that if the rate of mergers and acquisitions is high,the success rate is low.The reason leading to this phenomenon is the failure of integrating management after mergers and acquisitions.The issues including how to manage the enterprises after merger and acquisition,and what problems existing in integrating management,how to solve these problems,how to realize the unification of the two parties of merger and acquisition by integrating management,are the things to be tackled and also the reasons for the author of the paper to choose integrating management after merger and acquisition as the object of analysis.Management integration is to realize the rational allocation of the tangible resources,intangible resources and corporate internal and external organization resources of the two parties of mergers and acquisitions maximally on the basis of mergers and acquisitions,by the interaction among the various elements including plan,organization,control and coordination,in accordance with the basic principles of management,thus guaranteeing the optimal business performance of the enterprise.In the paper,the integrated management framework in corporate merger and acquisition is built,including(1)financial merging integration;(2)strategic interaction integration;(3)human resource integration;(4)corporate culture integration.As a private listed company,the integrating management case after Gangtai Holding merge and reorganize Daye Mining Industry has typical significance.In the paper,it takes the integrating management case after the mergers and acquisitions by Gangtai Holding as the research subject.By taking the relevant theories of mergers and acquisitions,and integrating management for reference,the case analysis method is adopted for the research.The contents have five chapters.In Chapter One,the introduction,the brief overview is made towards the research background and significance.Besides,the literature review on the importance,contents and model after mergers and acquisitions is arranged;and the research thoughts and methods of the paper are introduced.In Chapter Two,on the basis of reviewing the relevant documents,firstly,the theoretical basis of mergers and acquisitions is introduced,including the connotation and type of mergers and acquisitions;secondly,the theoretical basis of integrating management is introduced,including the connotation and objective of integrating management;thirdly,the contents of integrating management in the four aspects involved in the paper are introduced,which cover the financial integrating management,strategic integrating management,human resource integrating management and corporate culture integrating management;lastly,the theoretical reference of integrating management is introduced,including transaction cost theory,synergy effect theory and enterprise ' s competitiveness theory.In Chapter Three,the typical cases are chosen for analysis.In the paper,the integrating management case after mergers and acquisitions of Gangtai Holding is taken as the research object,the motive and process of the mergers and acquisitions of Gangtai Holding are analyzed in details,and how to conduct integrating management of Gangtai Holding after mergers and acquisitions is mainly analyzed.In Chapter Four,the problems existing in integrated management after mergers and acquisitions of Gangtai Holding are analyzed in the four aspects.The problems include financial integration,strategic integration,human resource integration and corporate culture integration,such as low funds-utilizing efficiency,ambiguous enterprise development strategic positioning,lack of high-level technical personnel,and slow corporate culture construction and progress.And then,the analysis is made towards reasons leading to the existing problems.In the paper,as far as the author is concerned,the reasons include that financial integration does not generate synergistic effect,it lacks clear competitive dominant strategy,there is no sufficient understanding towards the importance of human resource integration,and acquirer has weak consciousness towards the corporate culture integration.In Chapter Five,towards the problems existing in integrating management after the mergers and acquisitions by Gangtai Holding,the pertinent improvement suggestions are put forward,including the suggestions to conduct the financial integration comprehensively and orderly,to formulate the practical enterprise development strategy,to optimize human resource configuration,and to conduct corporate culture integration as soon as possible and so on.The acquisition and merger of Daye Mining Industry by Gangtai Holding is a typical case concerning the transformation of the main businesses after mergers and acquisitions.After the transformation of main businesses,the core competitiveness and human resources etc.of the enterprise will definitely change.Gangtai Holding must realize the unification of two parties of the mergers and acquisitions in finance,strategy,human resources and corporate culture via the integrating management after the mergers and acquisitions.In the paper,it aims to analyze the problems existing in integrating management of Gangtai Holding and put forward the improve suggestions,hoping to provide the methods and thoughts which can be taken for reference when the numerous enterprises without subsequent development capability since entering recession period after mergers and acquisitions conduct the integrating management work.