| Summary: | 碩士 === 中原大學 === 企業管理研究所 === 91 === Since Taiwan has joined with the World Trade Organization (WTO), Taiwan’s enterprises have faced much keener competition. The challenges Taiwan’s businesses have experienced are the rapid changes of global economy and the integrated world market. The electronic firms in Taiwan also went through the speedy improvement and shorter life expectancy of information technology products, as well as the dramatic changes of customers’ requirements. From the financially operative aspect, only a few firms were able to increase their profits relying on their own organization’s resources. Therefore, mergers and acquisitions became popular for the past decade in order to increase company’s market share. However, according to the statistics, the failure rate of mergers and acquisition was as high as 50%. Take the PCB (Printed Circuit Board) industry as an example, even the surviving company after mergers still has to adopt a strategy of lowering its price and made continuous investments in China to meet keen competition, but both methods put the company under the stress of keeping survival.
The objective of this study is to explore the key factors of a successful mergers and acquisitions in order to provide some valuable suggestions. We assumed that the performance of mergers and acquisition can be improved by several following parameters: to increase debt repayment ability, to improve asset management efficiency, to expand market share and to adjust cost structure. When the enterprienuers decide to use mergers and acquisition method to seek growth, they must consider the financial impacts. This study uses “W” electronic firm as an example to discuss its merging strategy, the acquisition process and its consequential result. Furthermore, this work explored the key factors of this acquisition from different aspects, and provide some suggestions those the firms which attempt to merge with other companies thereafter.
This study found that corporate mergers become successful or not depending majorly on the following factors: the ability to rapidly integrate operations, the outstanding leadership for the organization, the effective communication system, the performance evaluation and the rewards system. Corporate mergers not only have to allocate the resource effectively of the enterprises, but also have to analyze the internal and external affecting factors. The enterprises also have to set up their own practical operating goal and attainable business vision in order to operate everlastingly.
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