What are the methods of integration after corporate mergers and acquisitions?

Mergers and acquisitions integration plays a very important role in corporate mergers and acquisitions. U.S. statistics show that about 50% to 80% of mergers and acquisitions have depressing financial conditions. First-class academic and business research institutions have recently Over the past few decades, M&A behavior has been analyzed and studied, and it has been found that the following phenomena may occur after M&A: a decrease in the commitment and dedication of the management and employees of the acquired company, resulting in a reduction in the productivity of the acquired company; differences in culture, management and leadership styles Neglect leads to an increase in conflicts; the gradual loss of key managers and employees, which generally occurs within 6 to 12 months after the transaction is completed; the destruction of customer base and market share; about one-third of acquired companies The company was sold again within 5 years, and almost 90% of the mergers and acquisitions failed to achieve the expected results. These phenomena are closely related to the unsuccessful integration after the merger and acquisition. The following will introduce financial integration, human resources integration, asset integration and corporate culture in order. Integration.

Corporate culture is the sum of shared consciousness, values, behavioral norms and standards that are followed by all members and is formed through social practice under certain socio-economic conditions. It is the development of an enterprise in its own right. A unique cultural management model with value as the core is formed in the process. The so-called corporate culture integration is to handle different corporate cultures through merging, splitting, strengthening, weakening, etc., thereby forming a new corporate culture.

1. The Importance of Corporate Culture Integration

Corporate culture shapes the company's business methods and business philosophy, and affects the values ????and ways of thinking of corporate employees. Corporate mergers and acquisitions are a major adjustment of different corporate organizations. , major changes, which will inevitably have a strong impact on people's inherent ways of thinking and values, and bring great discomfort to corporate employees. This is the inevitable result of the collision of corporate cultures. This collision often creates problems after the completion of corporate mergers and acquisitions. The integration work has brought many problems, and if these problems cannot be properly handled, it may lead to the failure of the merger. In 2002, Lenovo's merger with Hanpu Consulting resulted in the resignation of many former Hanpu senior managers and a large number of consultants. The reason lies in the differences between the two parties. There is a serious conflict in corporate culture. Hanpu is a knowledge-based company with a corporate culture of equality and higher freedom, while Lenovo is generally regarded as a strong controlling company based on market capabilities. The differences and conflicts between the two different corporate cultures This resulted in a massive loss of personnel. However, in the HP merger with Compaq that occurred in the same year, the results were completely different. Why was HP's merger with Compaq such a huge success? One of the important reasons was that the cultural integration between the two was very successful. The corporate cultures of HP and Compaq are completely different. HP is an old company with a history of more than 60 years. Its corporate culture is the HP Way: loyalty to customers, trust and respect for individuals, pursuit of excellence, emphasis on teamwork, and encouragement of creativity. And Compaq is a young computer manufacturer. Compaq's corporate culture is more business-oriented, with the first goal of quickly seizing the market. Compaq's decision-making is quick, its operations are flexible, it does not focus on procedures, and it emphasizes quick action. HP When integrating Compaq's corporate culture, it absorbed the essence of Compaq culture and established a stronger corporate culture. This new culture inherited the integrity principle of HP's way and carried forward the principles of Compaq culture. The characteristics of flexibility and quick decision-making made this controversial merger and acquisition successful. Therefore, the integration of corporate culture is one of the keys to ensuring the success of the merger.

2. Integration of corporate culture The content

Corporate culture can be decomposed into two parts: ideology and corporate system.

Ideology also includes three parts:

1. Corporate values ??refer to the basic beliefs and concepts that a company advocates in the pursuit of business success. Corporate values ??reflect the fundamental starting point of a company's operations. Some companies may regard "profit" as their corporate values, when "innovation" and "service" are When there is a conflict between "profit", they will naturally choose the latter. In the same way, some other companies may hold different values ??such as "corporate value lies in innovation", "corporate value lies in service", "corporate value lies in educating people", etc. .

2． Enterprise business mode refers to the principles for dealing with the relationships between people, people and things, and various interests formed during the operation and management process of the enterprise. Specifically, it includes the enterprise's relationship between employers and employees, consumers and producers, enterprise interests and The handling of employee interests, current interests and long-term interests, mutual interests between enterprises, etc., as well as product quality, operating procedures, and technical development

Attitudes towards issues such as development and transformation, standardization, quotas, measurement, intelligence, cost, finance, planning, etc.

3. Corporate thinking style. This is the company’s relatively fixed views and opinions on what happens in social life and business operations.

Ideology is a hidden factor in corporate culture, and corporate system is an integral part of corporate culture. Explicit factors. The enterprise system is a culture that gives a certain direction, normative and mandatory behavior to the employees of the enterprise in order to ensure the success of the enterprise. The core of the enterprise system is the enterprise's management system. The management system is the enterprise's production and operation activities. Various regulations formulated with mandatory obligations and guaranteeing certain rights, including the enterprise's personnel system, financial management system, production management system, democratic management system and other rules and regulations.

3. Specific operations of corporate culture integration

1. Find out the similarities and differences in corporate culture between the acquirer and the target company

The cultures of any two companies will be different, just like there are no two identical leaves in the world. Corporate culture differences exist Various aspects, such as values, business methods, ways of thinking, management systems, social reputation, etc. When integrating corporate culture, we must first analyze the cultural differences and similarities between the acquiring company and the target company, so as to prepare for the next step. Integration work provides a basis for decision-making. Therefore, the acquiring party must understand the culture of the target company from various channels. These channels include previous presentations and introduction meetings held by the target company, articles on the target company's internal materials, and introductions to the target company by the news media. and reports and other companies’ opinions and evaluations of the target company, etc. After mastering the cultural characteristics of the target company in detail, the acquiring party can hire professionals to analyze and compare the target corporate culture and the acquiring party’s corporate culture to draw similarities between them. and differences. Sometimes, in order to make this analysis more intuitive, professionals often "draw" the corporate cultures of both parties to the merger and acquisition, that is, use diagrams to represent cultural differences and similarities, providing a visual analysis basis for corporate culture integration. .

2. Find out the main obstacles to cultural integration

The main obstacles to cultural integration are the key factors that may play a major hindering role in the cultural integration process. It can be a certain person, an interest group, or a type of the original enterprise. system, etc. As the steps of cultural integration are carried out, the main obstacle will be a very active factor. In the process of cultural integration, the conflict between the old and new cultures is inevitable. Therefore, the prediction and monitoring of the main obstacles are what cultural integration must pay attention to. Question.

3. Integrating the corporate cultures of both parties

After analyzing the similarities and differences in the corporate cultures of both parties and the main obstacles to cultural integration, the acquiring party must carry out actual integration work. When integrating the corporate cultures of both parties, the following issues should be paid attention to: (1) The transplantation of culture must be based on the actual situation of the target enterprise. Culture cannot exist and be transplanted alone, it must rely on the actual situation of the enterprise. If the target enterprise has a strong sense of rejection towards the new culture that the acquirer intends to inject, the acquirer will The transplanted culture should be modified according to the situation of the target enterprise. There must be reasonable elements in the culture of the target enterprise that are suitable for its business environment. These reasonable elements should be part of the basis of cultural integration and cannot be abandoned entirely. The acquiring party should strive to find A way to make it complement and function together with the mainstream culture of the acquiring party; (2) The acquiring party also needs to meet the material needs of the employees of the target enterprise. Corporate culture focuses on the construction of spirit and system rather than directly solving the problems of employees. material needs. The acquiring party cannot blindly provide abstract spiritual preaching and system management to the employees of the target enterprise, but must also use materials as a guarantee for cultural integration; (3) Cultural integration cannot be done too hastily. The integration of corporate culture often encounters problems at the beginning. resistance from the employees of the target company. This requires time to find an integration method that is acceptable to the employees of the target company and to subtly complete the cultural integration. Attempting to carry out reforms overnight and drastically will only aggravate the prejudices and prejudices of the employees of the target company. Dissatisfaction is not conducive to the stability and smooth progress of the integration work; (4) Different methods are adopted according to different employees. Cultural integration requires the cooperation of all employees of the target company. Therefore, the acquiring party should adopt different strategies according to different employees. Senior managers and acquirers should adopt a more direct approach, through face-to-face analysis and communication, to make them fully aware of the crises existing in the development of the enterprise and the necessity and importance of integration, and explain to them the future prospects and prospects of the enterprise.

Their potential benefits. For ordinary employees, the focus of the acquirer's work should be on enhancing communication and deepening trust. Because they have less understanding of the overall situation, unclear situation, fear, and resistance to reform; (5) Operation Good publicity work. During cultural integration, especially when injecting excellent culture into the target company, good publicity work must be done to the employees of the target company. The acquirer can use a variety of publicity methods, such as slogans, newspapers, radio, television, etc., and at the same time The publicity content must be produced and delivered according to the characteristics and requirements of the publicity target. In addition, the publicity work must meet these three requirements: clear, specific and repeated. Only when it is made clear and specific can it be understood by the employees of the target enterprise. Misunderstandings can be avoided; only repetition can impress the publicity target. Of course, the promotion of new culture must not be arbitrarily exaggerated, but must be realistic and feasible; (6) Finally, cultural integration must follow a people-oriented approach. Regardless of mergers and acquisitions Which strategy should be adopted by the acquiring party to carry out cultural integration? It must adhere to the humanistic idea of ??caring for and caring for people, and cannot put the development of the enterprise above the development of people. This also requires that the acquiring party should give full consideration to the cultural integration process. Give full attention to the employees of the target company, respect their feelings and opinions, and create good conditions for their personal development, thereby maximizing the subjective initiative of employees and helping the target company achieve transformation

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