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Thinking of financial integration after merger tactics on

Author: TanSanYan From: www.yourpaper.net Posted: 2010-05-31 23:25:24 Read:

[Abstract] many enterprises in the implementation of mergers and acquisitions, while recognizing that the merger integration can enhance corporate value and importance of financial effect, but because there is no master financial integration tactics, often get the opposite of what one wants to make acquisitions, did not achieve the desired effect.This paper proposed a merger integration should pay attention to one center, four principles and three place tactics.
[Keywords] financial M & A integration of tactical

Along with the upsurge of financial integration after M & a domestic mergers and cross-border mergers and acquisitions boom has become a hot topic in our country economy but always get the opposite of what one wants financial integration after M & A.Studies show that about 1/3 of the merged enterprise in 5 years and was sold and the 9O% merger did not achieve the desired results and even many enterprises for M & A enterprises predicament.These phenomena and financial integration is not closely related to success.After the merger of financial integration failure is to a large extent did not have a good grasp of financial integration after M & a correct tactics.
, the financial integration after M & A should pay attention to a center namely around the target acquisition strategy established as the center. The design and implementation of financial integration
M & a strategy of mergers and acquisitions of different financial integration strategy should be different on the set of financial instruments, financial integration is the acquirer with design for integrated manufacturing center and sales center is greatly different.For example, the first brigade group through mergers and acquisitions, to implement the strategy of vertical integration of upstream and downstream of the facility financial integration implementation of horizontal integration strategy implementation industrialization and scale through mergers and acquisitions and financial integration will group into home network, the international chain of eat, live, travel, shopping, integration of aircraft carrier.
two, in the financial integration in corporate mergers and acquisitions should follow four principles of
1 compulsory principle
Before the acquisition due to mergers and acquisitions in the financial capability is better by M & A in the strong model in M & as both sides refused to integrate in the process will produce some.The group wants to play to the role of control must have the appropriate rights and ensure the implementation of the merged enterprise financial management.In the company after the merger control status can be sent as the merged enterprise top managers and chief financial officer in minority identity after the joint management company.Merger and acquisition of enterprises should have the right of approval and operational control of significant financial matters.The company after the acquisition, control not only relates to the profit sharing relates to product image and marketing etc..In the process of financial integration in order to guarantee the smoothly, quickly and efficiently implement control some integrated measures must be enforced.
2 fusion principle
Financial integration after M & A is the largest value of the overall enterprise M & a pursuit of the group and.The enterprise according to the need of its development strategy, flexible use of the merged enterprise reorganization, listed capital Kuogu, sell, custody, clearing the separation form, fast implementation of centralized, enterprise capital is mergers and acquisitions, expansion, contraction and retreat of agglomeration.For large scale, and subsidiary, branch of money exchanges more conglomerates. Need more coordination, planning of enterprise funds. In order to improve the efficiency in the use of funds for the group as a whole the target service.In addition, group M & A in the acquisition and management of enterprises. In the enterprise culture, management system, friction will be relatively large, synergistic effect for management and financial management is necessary to strengthen enterprise merger & acquisition is necessary, is between M & A in group and mergers and acquisitions business capital, capital regulation of fusion between the enterprise and the M & a enterprise.After the merger of enterprises scale, can be based on the same funds to obtain more loans improve liabilities become possible.Group can make timely adjustment of capital structure, debt capacity of the merged enterprise and control the financial leverage effect.
3 unity principle
Financial integration is the purpose of the M & A of both the financial content. Includes forming a unified structure, system, organization, resource to determine the organization dealing with the financial resources allocation of the complex and volatile market environment.Generally, financial headquarters unified financial allocation function can guarantee the uniform but this must be achieved through the improvement of the system.Unified configuration so the unity principle of financial integration is the inevitable requirement of unified financial management system in order to achieve financial resources, to ensure consistency of financial datum.The principle of unified requirements after M & A will first be financial management objectives for realizing the maximization of enterprise value: followed by reducing the risk of investment and financing risk and financial risk of unified financial management system of unified accounting system again, M & a company by the finance evaluation of integrated assessment system for performance to combinatorial optimization and unified index system.
The 4 innovation principles of
The financial information integration into the group of innovative principle demands after merger and acquisition policy and system will be merged enterprises.Merged enterprises should give up their original financial system, accounting system. To gradually adapt to the future financial information and financial information in accordance with the parent company requirements for finishing passes in the parent company based on financial control in the parent company of parent-subsidiary corporation financial information flow between cohesion and smooth the parent company's requirements.For example in the integration process of accounting system by strengthening the financial management of enterprise production and management of the whole process of dual control is established based on the financial main body leading the formation of financial control line from accounting to capital cost accounting. Accounting track formed in accounting control line gradually formed to adapt to the needs of modern enterprise financial mechanism of enterprise business by a capital budget management management of the capital cost is financial management track.
three, financial integration after M & A to implement the financial management of enterprise M & A in place of
1 pairs of mergers and acquisitions business investment activity of the integration of
Mergers and acquisitions of Target Corp with its assets for qualitative analysis of the enterprise after acquisition can not use or does not need in the production and operation of the assets in time sold out. To quickly recover part of funds. And the recovery of funds to the enterprise's production and operating activities of variable precipitation funds for working capital, improve the return on assets and enterprise internal value.Because of idle assets will usually happen naturally and intangible loss and the need to pay a certain amount of assets storage cost at the same time, make full use of the existing assets of the enterprise after acquisition, make full use of its potential utility requires not only its own assets, liabilities, coordination, reasonable configuration, but also for its assets, liabilities and the whole enterprise group (or the original merger and acquisition of enterprises) the capital structure and its production and operating activities coordination, reasonable configuration.
2 of the merged enterprise business activities of the integration of
Is mainly reflected in the horizontal merger of group enterprises, the implementation of mergers and acquisitions of enterprises are often in the same competing in the market, each have their own suppliers, customers and similar supply chain, leading enterprises through mergers and acquisitions to achieve mutual supply market and sales market, integration of resources to reduce supply chain cost, improve operation efficiency, achieve economies of scale economy and expand the competitive advantage of purpose however two enterprise supply chain is not due to mergers and acquisitions of natural integration and collaboration, and must pass both in the acquisition phase information exchange constantly. Communication, build up mutual trust between the two sides to ask and dependencies, to realize the integration of the supply chain, achieve mutual use including upstream suppliers and downstream distribution channels in the purpose of resource.Specific can take the following measures: integration through the integration of procurement information especially the integration of accounting and procurement cost control of supplier, through the integration of production information, especially the unified accounting and control of production cost of realizing the integration of the production process, the integration of information flow through the product especially the integration of accounting and management of inventory to achieve unity products logistics through the sale of information especially the credit record and control the implementation of the integrated distributors distributors.
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