| Summary: | 碩士 === 淡江大學 === 全球華商經營管理數位學習碩士在職專班 === 97 === Under the trend of globalization, vertical and horizontal integration between the industries has become the only way to achieve economic scale and to lower costs, enhancing the company’s operation performance and thereby expanding the operation scale and market share. Since the implementation of business Merger and Acquisition Law, the number of domestic M&A is increasing in a faster pace each year. However, not all M&A cases could bring the benefits of drastic growth. In recent years, the lack of benefits for some domestic enterprises has resulted in enterprise crisis; on the contrary, a poor crisis management will bring negative impacts. Recently in Taiwan there are still many Vertical M&A cases, while most of the enterprises are still in the learning process. Therefore how to take lessons from other successful or failing M&A stories and use them as own reference to move towards greater success, is the motivation for this paper and according to this motivation, the paper will study on the following topics:
1.How successful business managers assess crisis in M&A.
2.Business managers’ responses to crisis resulted from M&A.
3.Validation of whether if the past M&A failure teaches success for next M&A.
4.Cultural integration and differences for businesses in the M&A process.
5.How to set up a stop-loss in M&A.
The relevant articles cited in literature review consisted of “enterprise mergers and acquisitions” and enterprise crisis.” The study discovered the similarity in motivations for M&A between the domestic and international enterprises. However, the acknowledged value of the merged company during M&A might hold a different opinion, while the crisis resulted when facing with M&A is identical for both domestic and international businesses; simply put, to handle crisis with honesty and to accurately determine the crisis scale in order to provide solutions for crisis. For most businesses visited in the case study, they believe the accumulation of past experiences in failure will help avoiding making the same mistake for the next M&A process.
The study conducted an in-depth interview with four corporations, whereas the valuable first-hand experiences of the interviewees merit further study and can correspond to following objectives of validation:
1.How successful business managers assess crisis in M&A.
(1)M&A are likely to succeed in acquisitions of small firms merged by large firms.
(2)Organization of the main M&A companies working closely is the one most likely to succeed.
(3)Both emphasize on pre-operation review and assessment of legal procedures.
2.Business managers’ responses to crisis resulted from M&A.
(1)When crisis arises, face it with honesty and assess the degree of harm on the business, then immediately take actions to prevent expansion of crisis in order to re-start again.
(2)Businesses should provide appropriate information to the media.
(3)Establish an internal special institution in charge of crisis management.
3.Validate of whether if the past M&A failure teaches success for next M&A.
Every corporation believes that successful M&A depends on the accumulation of failures.
4.Cultural differences between different businesses in the M&A process.
(1)Respect the local culture of merged company.
(2)Enable cultural identity of the mother company for overseas employees.
(3)Integration of two cultures requires long-term communication and coordination.
5. How to set up a stop-loss in M&A.
There is no time constraint on the stop-loss after M&A process takes place, which is to be determined by the market positioning and industry trend.
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