The Synergistic Effects Of Strategic Cross-border M&A Of Private Enterprises

With the high speed of economic globalization and the increasingly close economic links between countries,cross-border mergers and acquisitions have undoubtedly become an important economic means for enterprises to obtain resources,market information and production technology.Since the reform and opening up,more and more Chinese enterprises have made foreign direct investment through cross-border mergers and acquisitions under the guidance of the strategy of "introducing in and going out".However,there are still few successful M&A cases.The "Seventy-seven Law" states that 70% of M&A fails to achieve the expected corporate value,and 70% of the failure results from the cultural integration after M&A.Therefore,the effective analysis of the synergistic effect of cross-border M&A can help enterprises to judge whether to achieve the expected goal of M&A,which has also become an important research topic.This paper studies the synergistic effect of cross-border mergers and acquisitions of private enterprises in the later stage by taking the largest case of mergers and acquisitions in printing industry up to now,taking Ninestar's merger and acquisition of American printing giant Lexmark as an example.This paper mainly uses financial index method,non-financial index method and event study method to explore the indicators before and after Ninestar M&A(quarterly disclosure data from 2016 to 2018)and business status,as well as the indicators of other enterprises in the same industry at the same time,and to explore the main performance of the M&A in three aspects: business synergy,management synergy and financial synergy.The research shows that a successful case of Ninestar's merger and acquisition of Lexmark has basically played a synergistic role,not only increasing its brand influence,but also improving its R&D technology.But at the same time,there are certain risks,such as the risk of debt repayment.After the merger and acquisition of Lexmark,Ninestar has been under tremendous financial pressure,and its ability to repay debts has declined dramatically.But as long as the positive effects outweigh the negative ones,Ninestar's M&A is successful in general.Finally,the author makes a summary of Ninestar's M&A cases,and provides some enlightenment to the effect of cross-border M&A of private enterprises: clarifying the motivation of M&A,implementing diversified financing and emphasizing post-integration,which can provide reference for more similar private enterprises,especially for the printing industry in cross-border M&A in the future.