A Case Study Of Apex's Cross-border Merger With Lexmark

At present,cross-border mergers and acquisitions have become one of the best solutions for enterprises in various countries to expand their own strength,accelerate scientific and technological innovation and improve their market position.In recent years,the demand of domestic enterprises for overseas mergers and acquisitions has been growing rapidly.Many domestic companies pin all their hopes of expanding the international market on overseas mergers and acquisitions,hoping to improve their comprehensive competitiveness and influence in the world through cross-border mergers and acquisitions.But many studies have shown that,although many companies have already completed the cross-border mergers and acquisitions of domestic,but after the completion of a deal,but very few companies can achieve expected before M&A,company can bring substantial profits are much rarer,therefore the success rate of transnational merger and acquisition of Chinese enterprises has been in a low state.It can be said that cross-border M&A is an economic project with extremely complex technology and huge investment.Whether the transaction can finally achieve the expectation is not only influenced by external environmental factors,but also closely related to whether it can utilize abundant financing channels and effectively deal with the problems encountered in and after M&A.At the end of 2016,China's famous printer manufacturers Apex company and the success of the mergers and acquisitions,Lexmark,and relatively Lexmark company,Apex company can only be classified as competitor,and Apex company's assets before M&A is only Lexmark about one 8 of the company,has successfully realized the largest so far a "snake swallow like" classic cross-border M&A cases,in the industry enjoys a reputation as a "model".Through this cross-border merger and acquisition,apex not only improved the overall industrial chain layout of the company,but also promoted apex to become a world leader in the printing consumables industry.It is worth noting that apex spent $4.044 billion to acquire Lexmark,while apex itself provided only $108 million for the acquisition.How did apex solve the problem ofinsufficient capital? What has been done to close the huge funding gap? How does apex deal with the obstacles in its "snake-swallow" cross-border M&A? And how to deal with the challenges brought by different national cultures after M&A? Through the analysis of these problems,this paper summarizes the successful experience of apex in the cross-border merger and acquisition of Lexmark.In the current situation that domestic enterprises are keen on cross-border merger and acquisition,the successful completion of the cross-border merger and acquisition of Lexmark by apex has certain reference value.This paper first introduces the basic situation of apex and Lexmark,the two parties of the case,and analyzes the motivation of the merger from the perspective of both parties.Secondly,it introduces the process of the M&A case,including several stages in the M&A process,financing methods adopted in the M&A process in order to raise sufficient funds,problems in the M&A process and methods to solve them.Mr.Parker company mergers and acquisitions are on again Lexmark company after the analysis of existing problems and effect,Apex company after the merger there are still certain integration problems,such as enterprise resources and differences of the business,different regional culture and enterprise culture,personnel management coordination problems,Mr.Parker fusion has adopted a series of measures to solve these problems,such as selling ES business,to set up the management system and take the partner type strategy,and from the merger after the completion of the company's business situation and financial situation from two aspects to analyze the effect after M&A;Finally,it summarizes the successful experience of apex's cross-border mergers and acquisitions,and on this basis,further puts forward the relevant enlightenment for Chinese enterprises to conduct overseas mergers and acquisitions in the future.