Research On The Integration Strategy And Synergy Effect Of Reverse Cross-border Mergers And Acquisition

In recent years,with the rapid rise of emerging economies,the reverse cross-border mergers and acquisitions(M&A)of enterprises from emerging economies to enterprises from developed countries have grown rapidly.Different from traditional cross-border M&A,reverse cross-border M&A is the M&A initiated by weak enterprises to strong enterprises.There is a significant gap between the two sides in terms of resources,capabilities and status.This also leads to the greater difficulty of integration after reverse cross-border M&A than traditional cross-border M&A,and the higher failure rate of integration,which is not conducive to the synergy of M&A enterprises.Therefore,how to carry out effective integration after reverse cross-border M&A is a hot issue in international business research.This paper takes Blue Sail Medical’s reverse cross-border M&A of Biosensors International as an example to study the integration strategy,integration of strategic resources and realization of synergy effect adopted by Blue Sail Medical in the M&A integration stage.First of all,it introduces the background of the two companies participating in the M&A,and analyzes the motivation and specific process of Blue Sail Medical’s M&A of Biosensors International.Secondly,this paper focuses on the integration measures taken by Blue Sail Medical after the M&A,and accordingly analyzes the overall integration strategy adopted by Blue Sail Medical in the M&A integration stage and the specific ways of integrating strategic resources.Finally,this paper analyzes the mechanism of achieving synergy according to the way of Blue Sail Medical’s integration of strategic resources,and analyzes the integration effect of Blue Sail Medical’s M&A from both short-term and long-term aspects,so as to judge whether the integration of Blue Sail Medical’s M&A achieves synergy.The study found that the merger had a positive impact on the share price of Blue Sail Medical in the short term.Investors and the market were optimistic about the merger and gave positive feedback.In the long run,the integration effect of M&A integration strategy is good or bad.On the one hand,Biosensors International has brought a positive impact on Blue Sail Medical because of its strong scientific research strength and strong market competitiveness.On the other hand,due to its excessive assets and large volume,Biosensors International has brought a relatively negative impact on the financial and management of Blue Sail Medical,which is reflected in the fact that the effect of financial and management synergy is not obvious.Based on the above research conclusions,this article proposes corresponding countermeasures.On the one hand,it is recommended that Blue Sail Medical should continuously optimize its internal organizational structure,cultivate talents with an international perspective,continuously improve the operational efficiency of the enterprise,thereby reducing various costs of the enterprise and ultimately achieving an improvement in profitability.On the other hand,M&A have brought greater debt pressure to Blue Sail Medical,so Blue Sail Medical should formulate a reasonable debt repayment plan to effectively reduce financial risks.