A Case Study On The Failure Of Cross Border Mergers And Acquisitions Of The Cultural Great Wall

In recent years,the domestic M&A market has been very active,and the number and scale of mergers and acquisitions are also increasing.Among them,traditional enterprises have experienced a decline in profitability due to changes in market conditions and the impact of national industrial policies,which has limited their future development.In order to enhance the profitability of enterprises and quickly enter emerging industries,many traditional enterprises have conducted cross-border mergers and acquisitions.However,after conducting cross-border mergers and acquisitions,many companies not only failed to achieve the expected results,but also led to operational difficulties,which also means that their cross-border mergers and acquisitions have failed.In view of this,this article takes the Cultural Great Wall as the research object,analyzes the reasons for the failure of cross-border mergers and acquisitions in depth based on relevant theoretical foundations,and proposes relevant inspirations to prevent cross-border mergers and acquisitions from failing.Through research,it has been found that the reasons for the failure of crossborder mergers and acquisitions of the Cultural Great Wall are as follows: firstly,in preparation for mergers and acquisitions,the reasons for the failure of crossborder mergers and acquisitions are improper selection of merger targets,blind pursuit of mergers and acquisitions regardless of one’s own strength,and insufficient understanding of the merger targets;Secondly,during the implementation of mergers and acquisitions,the reasons for the failure of crossborder mergers and acquisitions lie in the unreasonable valuation of the acquisition target,the unreasonable setting of performance commitment terms,and the unobstructed financing channels,Finally,during mergers and acquisitions integration,the reasons for the failure of cross-border mergers and acquisitions are improper integration of personnel and organizational structures,improper business integration,and neglect of cultural integration.The failure of cross-border mergers and acquisitions of the Cultural Great Wall has also brought the following inspirations: firstly,in preparation for mergers and acquisitions,it is necessary to carefully select the acquisition target,objectively measure one’s own acquisition ability before making merger decisions,and fully understand the acquisition target;Secondly,during the implementation of mergers and acquisitions,it is necessary to reasonably evaluate the value of the acquisition targets,optimize performance commitment agreements,and ensure smooth financing channels;Thirdly,during mergers and acquisitions integration,attention should be paid to the integration of personnel and organizational structures,business integration,and cultural integration after mergers and acquisitions.As a traditional manufacturing enterprise,the Cultural Great Wall can provide some reference for subsequent cross-border mergers and acquisitions of traditional manufacturing enterprises by analyzing the reasons for their failure in cross-border mergers and acquisitions and proposing corresponding inspirations.