A Study On The Problems And Suggestions Of Financial Integration After Merger And Acquisition

With the continuous development of economic globalization and market economy,the number of enterprises rises up simultaneously with increased competition.In order to survive and develop in long-term during the competition,mergers,acquisitions,and cooperative activities between enterprises are becoming more and more frequent.The production of mergers and acquisitions is mainly promoted by the continuous improvement of information technology,the innovation of high-tech industry,and the rise of big data era.By means of mergers and acquisitions,companies can rapidly expand its production scale,adjust industrial structure,enhance core competence,and improve operating status.However,the present status of mergers and acquisitions for many companies in China is not optimistic,with lots of cases ended in failure.The key reason for such failures is the unsatisfactory financial integration following the merger affairs.This process is an important path for company to realize the strategic goal of merger and acquisition,the result of which can directly affects the effect of the integration after merger and acquisition.Based on the research of literature involving merger and acquisition,this paper combines the obtained economic rules with the merger and acquisition case of company A and further proposes the necessity,the principle,and the content of financial integration.Then,the acquisition motivation and process of company B during its acquisition upon company A are described in detail.Using quantitative analysis method,the financial indicators of company A acquired after two years are comprehensively analyzed and the effect is evaluated.The analyzed result demonstrates that the problems existing are mainly unclear company goal,low professional level of financial management staff,insufficient assessment for integration risk,inadequate integration for core competence,and other integration separation.Targeted for the problems in the financial integration of company A after merger and acquisition,several reasonable suggestions are provided,including the formulation of company strategic target and financial goals,the design of financial integration plan,the configuration of financial staffs,the prevention of financial risks before/during/after merger and acquisition,and the strengthen collaboration between departments.It is hoped that this paper can be helpful for the financial integration of other companies after the merger and acquisition,seeking to provide practical guidance and reference for the decision makers in the financial integration.