The Strategies and Integration of Mergers and Acquisitions: A Case Study of the LED Industry

• Main Authors: Ti-Fan Nieh, 聶滌凡
• Other Authors: 徐俊明
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/79g545

碩士 === 國立中興大學 === 高階經理人碩士在職專班 === 101 === This study examines the strategies, valuation, and integration of Taiwan-based Lextar and Wellypower companies’ stock-exchange merger, the former being a light emitting diode (LED) manufacturer and the latter being an optronic firm. The deal is a vertical merger, which allows Lextar to find its LED exit and Wellypower to obtain its raw materials. I compare Lextar’s strategies to Epistar’s, another LED company that undertook a number horizontal mergers. I find that Lextar-Wellypower merger can resolve the excess of LED wafer quantities and develop lighting techniques. Based on these advantage, Lextar paid little price premium to acquire Wellypower. However, its success relies on the stable LED lighting prices and extended sales channels. By contrast, Epistar’s multiple mergers are able to lower costs and own bargaining power, but may face challenges arising from the low demand of LED materials. In addition, I provide suggestions for Lextar’s future strategies and operations. Keywords: Merger strategies, Merger Valuation, Post-merger Integration, Synergy