| Author：Unknown Source：Reprinted Hits： UpdateTime：2007-5-12 16:46:13 |
| Chinese enterprises in overseas acquisitions, To assure its status at home has become very solid Guillermo P & G acquisition, the acquisition of Swiss Lufthansa flights Following Renke Oracle, after the success of Retek income capsule, Through the acquisition, Novartis AG and Germany-He (Hexal), and its American subsidiary of the Unit EonLabs67.7% copies, becoming the world's largest generic drug producers ... merger wave began to rise in the global context. Merger low success rate of mergers and acquisitions and the need to achieve growth, many managers into a dilemma. How to eliminate the shadow of the failure of the merger, as to help enterprises expand the success of weapon? Our staff reporters interviewed the management consulting firm Bain and global mergers and acquisitions for the Chinese and Sam Rovit partner Tangmai6 district. Not undermine the principle of iron Xinhua : the world is now set off a new upsurge of M & As, Do you think that a merger which showed new features? Sam : Yes, indeed saw this wave. The wave of mergers and acquisitions is widely distributed in the region, which is also widely reflected in the distribution industry. We have also seen a new feature is the large mergers and acquisitions that more than one billion dollars on top of the mergers and acquisitions volume growth in the beginning. Tangmai6 : At the same time we note that M & A activity in China has increased, the Chinese enterprises in overseas M & A growth Although the starting point is very low, but growth will be dramatic. We would like to Chinese enterprises do some advice to the bulk of the M & A to take a cautious attitude, they gain experience before, in past experience institutionalized, to be doubly cautious. especially overseas M & As, because overseas than domestic M & M & A greater risk. Reporter : M & A has been a complex topic that 75% of all mergers and acquisitions fail, But that does not block the pace of M & A, the control of mergers and acquisitions is the key to what? Sam : Through the successful implementation of these mergers and acquisitions and often carry out mergers of enterprises, We found that they have some characteristics : first of all they will start from a merger on the establishment of a team, and the first time will bring the various departments, including the manager of the M & A decision-making. Furthermore they will soon be giving way to propose a merger plan, according to the implementation plan, the same time to learn from the failure and success of the experience, and these experiences and principles of institutionalization. They have ironclad principles, which can not be destroyed, once the merger undermine those principles they would rather not. Reporter : the iron principles are what? Sam : If the merger is seen as a value chain, the following several aspects : First strategy I told the strategy is to invest in what direction. The second goal is options. Acquisition target. The third part is due diligence. Fourth component is the integration. In the third, the link between the four areas is also an assessment and negotiation session. The so-called iron first principle is to develop strategies and acquisitions must meet the strategic, in line with the direction of the development of enterprises, Following the strategy of targeting. Next is due diligence. Fidelity investigation through acquisition value of the number of objects in the end, this does not guarantee that the amount of money wasted, these are called iron principle. Chinese enterprises need not hurry to international news : in this round of mergers and acquisitions wave, Chinese enterprises overseas M & A more interesting. Do you think that the Chinese enterprises in overseas M & A should pay attention to what issues? Tangmai6 : Generally speaking, Chinese enterprises overseas M & A activity in the rapid growth, of course, the starting point is still relatively low. We want to advice is that Chinese enterprises overseas mergers and acquisitions, must ensure that their domestic position has become very solid. According to our study, the domestic market position solid enough, the overseas M & As will not be successful. because overseas M & A activity involves great risk, but also the Chinese people still have a lot of growth opportunities. Sam : I would like to talk about for Lenovo's acquisition of IBM and views. We compared a list of standards, we can see the Lenovo acquisition of IBM There will be a lot of challenges. The first involves the acquisition by the size of a large acquisition. Second, the Legend of IBM's PC business in the merger, will have a market share of the domestic give Dell, This will weaken the foundation of overseas mergers and acquisitions. Our theory is Lenovo's acquisition of IBM to be able to strengthen existing businesses, and this need to fight a question mark. And then there are costs synergies, we can see that the two companies. Lenovo and IBM formed in many places difficult to cost synergies : one in the United States, one in China; One is the high-end products sold to the enterprise computer users, is a low-end products, family-oriented users. There is the cultural fusion, two different management culture. The most urgent matter after the merger is how to retain the original IBM management team, After all, they, as the management team paid a high price. There is a phenomenon I was very confused -- many Chinese enterprises are eager to conduct overseas investment, overseas acquisitions Chinese market competition is very fierce, very few companies are in industries where the formation of relative monopoly position. In such markets the chances of success should be greater expansion of the scale of the more chance. In mergers and acquisitions abroad at greater risk, and create synergy are less likely. Some people say that China is too fierce competition, China's foreign than small, in fact, this is not the case, at least they may be equally fierce. You were the yard of the pool of fish, you had better pool in the yard swim more comfortable. I think that the internationalization of Chinese enterprises on a bit premature. Reporter : The views of many Chinese enterprises is a blow, Do you think TCL, Huawei these leading enterprises to expand overseas market strategy is wrong? Sam : It is now too early to judge. For most industries, they have the scale should be expanded to first achieve economies of scale in the domestic growth. I can hardly imagine that no one in their country to do the job market enterprises, we will be able to successfully conducted overseas investment. Reporter : So what do you think when the trend toward globalization of Chinese enterprises is ripe opportunity? Sam : The best time depends on a variety of businesses, some industry should begin as soon as possible for globalization, Some industries do not. If you want to globalization, you have to be the enterprise, you must trade for a solid leading position. If your business in China is relatively weak, and overseas mergers and acquisitions will make you lose domestic market share, rely on overseas acquisitions will not solve your problem. Merger is not always a correct answer, I have repeatedly stressed the merger itself is not a strategy, Acquisition is to promote corporate strategy tool. I have clients in the United States say the same thing, their own there is still great space for growth when it is necessary for their growth, do not necessarily have to take the M & A practice. The same thing for Chinese enterprises concerned, the growth of many industries now the room is enormous. Reporter : According to the current situation, what do you think the industry is ahead of the international, What industries should attract? Sam : cite two examples, resource-oriented enterprises, such as oil and mineral enterprises. They conducted globalization is more appropriate. Now many of our competitors, such as the beer industry, in China there are many integration space, so there was no need to rush into an international one.Reship please add：(Copy from：sinoec.net)
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