Research on Enterprise Mergers and Integrations

Author: Yang Jie
Publisher:
Publish Date: 2005-01-01
Features: Mergers and acquisitions (M&A) in the West have a history of over 100 years and have triggered five waves of global M&A trends. Since the reform and opening-up, China has also had more than 20 years of M&A practices, but M&A does not always succeed. Perhaps every company's initial intention in M&A is good, but the performance or results of the M&A are far from satisfactory, as proven by extensive practice and drawing attention from Western economists. M&A is an inevitable product of a market economy, and the more developed the market economy, the higher the frequency of M&A. Therefore, discussing M&A issues should be a timeless and vibrant topic. M&A is a behavior that emerges and develops with the birth and growth of enterprises. Whether it is the labor division theory of Adam Smith and David Ricardo in classical economics, or the transaction cost theory of Coase and Williamson in modern institutional economics; whether it is the political economy theory of Marx and Engels, or the China-specific socialist theory born from practice, all have provided insightful discussions and analyses. These theories teach us an important lesson: M&A is a byproduct of large-scale social production, a result of market competition, an effective way to improve the efficiency of social resource utilization, and an important driving force for social progress. Whenever there is M&A, there must be post-M&A integration. Post-M&A integration is both the foundation of successful M&A and a critical issue that should be seriously considered during the planning stage. Integration can be divided into multiple contents, levels, and perspectives.