Merger is not because the majority of enterprises has not taken the strategic and tactical approach which led to the failure. but in the absence of a high degree of integration concerns M & Many studies have shown that M & A failure of the most dangerous time of the marriage after the two companies, enterprises started to operate at reunification. However, what is puzzling is that they are usually in the process of mergers and acquisitions due to excessive fanaticism, and not because of negligence details lead to the destruction of value. This is because the merger were aware of the acquisition process has many potential dangers. They usually Merger every aspect cudgeled his brains to develop a comprehensive, detailed program, thus achieving autoimmune results. However, they were not aware that their detailed, the intention is clear, probably only for their own M & exhumation. In fact, not too many of the mergers and acquisitions the company realized early smaller scale of the benefits of mergers and acquisitions. In some cases, excessive merger will even cause greater harm. We have to analyze what the 20th century to the 1990s Novell 855 million dollars WordP company mergers erfect the case. This two are respectively network market brand-name enterprises and the development of the first word processing software enterprises, Their merger is to increase competitiveness and to counter Microsoft. After the signing of transactions, Novell immediately established a new board of directors and a large number of the merger plan. "In these dangerous on the details of the scheme". a Novell senior vice president at a software trade publication Softletter interview he said. As reported by the Softletter, "Novell is to be successful, it must rely on the thousands of small and minor, These resolutions allow senior management to spend at least 16 to 18 months time. "To maximize participation in all these details plans and resolutions, Novell management will WordPerfect to the different lines of products and services, the company Sales, corporate culture and business model absorption of their companies. But Novell to increase control over and to Novell's WordPerfect characteristics upon the public Secretary for the all-round efforts have aroused a strong sense of cultural conflict that enable companies to contain the development. When Novell concentrate efforts to make the merger on track, its main products falls on the plan. This makes Microsoft the opportunity to win the Novell market and upgrade of Microsoft in word processing software and network products side Surface market share. Novell's performance and stock price plummeted. WordPerfect in sales, mergers and acquisitions, FY 1994 a reduction of 17%. in January 1996, less than two years after the merger, Novell abandon the transaction, WordPerfect to be bought at low prices seventh sold to the Corel. companies Since then, Novell's stock price than before the announcement of the acquisition to reduce by nearly half. Novell lessons show that in today's rapidly changing, highly competitive market, companies M & impasse into which the company will pay a painful price. Different types of M & A requirements are different degrees of integration is not because business has not taken the strategic and tactical approach which led to the Merger failure. In a recent Bain companies on the global 250 senior management personnel of the survey, These management failures that lead to the acquisition and are the main reason for the integration. "Overlooking the integration challenges." 67% of respondents mentioned the failure of the merger, said the main factors (for the first of those surveyed). 61% (the third of respondents) said that "The merger management or retain key managers may cause problems. "The majority of managers (80% of the surveyed ) recognizes that the success of M & Driver important factors are : To integrate the efforts must be "highly concerned about the value of mergers and acquisitions." Where is the value? Merger value of the acquisition of the road for how long? The answers to these questions are different because of the merger and the different. Really understand the value and decide what efforts will be necessary to achieve the value of mergers and acquisitions should the merger based on the basic principles, M & Industry claimed that the "investment theory" as a guide. In short, a merger or the acquisition will strengthen some of the core business, either for investment will provide a new and independent platform (which may be referred to as "positive investment"). If the merger strengthened its core business, the company will expand the scale of operations (to achieve lower costs and increase our market position purposes, similar products or increase the number of consumers) or expand their scope of operation (through mergers and acquisitions can bring the two sides to one or several new products Commodities, customer segments of the market, or market channels and increase revenue opportunities). Positive investment, and expanding the scale of operations expand the scope of operations of these three types of investment theory requires different levels of M & A integration. For instance, if a company was acquired in the development of the new platform first, it may virtually no integration. Through the acquisition of specific companies to add value and through secondary sale or provided to the government departments to obtain profit private assets, That is the real significance of the active investors. They usually use different combinations of the company's assets to limit the integration of the scale of integration, In order to increase each department some new management personnel, and improving financial reporting requirements. But those who increased the scale or scope of the merger requires the commitment of senior management staff to devote more attention to the integration of work. Expand the scope of operation for selective acquisition integration best to expand the scope of the merger called for both companies careful integration to be successful, but only in specific areas. For example, an expanded product range and acquisitions in the core functions and distribution channels for the extensive integration, it does not have the manufacturing and R & D area. The best option is probably to maintain business and culture independent of each other, or only direct overlap in the operating departments to create a new enterprise culture. Through mergers and acquisitions to expand their scope of operation and selective integration of the companies is often higher than the industry average of the profits. In a recent study, We analyzed the merger announced a year later prices are high and peers who expand their scope of operation of the buyers. It was found that better performance in all of the companies in part or to minimize integration. But when we look back to those who fall in the price of analysis of the company, found that only one-third of the company or some of the smallest-scale merger integration; Other companies are large-scale merger integration. The same time, many other factors will influence the success or failure Our survey data based on those applied to expand the scope of the selective acquisition integration. Illinois Tool Works (ITW) is an industrial area of frequent mergers and acquisitions of public Division, which is a very good reference on how to use M & As have at least put up profits example. ITW main objective is attempting to acquire the subsidiary outside the value of the assets, rather than by merging operations to generate synergy. W.James Farrell in 1995, he was elected as the president of ITW. He in the past six years, the use of six billion dollars by buying more than 200 small-scale mainly private companies. ITW for the merger almost all independent. The companies concerned are acquired companies can effectively improve the performance of the small market; It is the core program called "80-20 process," 20% say they were the most popular products, which may be 80% of income, These are based on a small number of major customers sales. Correspondingly, in the 600 ITW small, highly specialized companies, the branch manager can almost headquarters through referrals own management department, Of course all this is to be built on top 80-20 rule, and the main concern for major consumers and products. And the integration of operations is different ITW companies pay more attention to the integration of control functions. Company headquarters tax, audit, investor relations, R & D support, and some important human resource management functions. For branches were taken independently support, as well as guidelines for their headquarters moving in the right direction. This selective integration to the company's profits. Since 1995, Farrell management company, M & A in 2003, making the company's revenue increased more than doubled, reaching 10 billion dollars. Meanwhile, the company's share price has risen five times. Sears Roebuck catalog company acquired retailer Lands' End facts indicate that small-scale integration is a strategy to win. , Analysts announced the acquisition of skeptical. Although the acquisition looks reasonable. because Sears apparel production lines do need Lands' End's help, Many people, however, found two companies existence of cultural conflict. They want to understand the slow pace of the Sears company is how to maintain the Lands' End company Praises customer service Treasury and agile supply chain. Sears and the answer is no more, Lands End of the matter but some support sector mergers, such as the purchase of departments. "This is not in order to save cost." Sears CEO Alan Lacy in a letter addressed to the staff, he said, "Sears would like to maintain the Lands' End company features and power. "Sears also know that many La nds' End company loyalty, influential with their customers this low-cost large retailers and the associated fear, So Sears retains the Lands' End company independent customer interface, Allow Lands' End continue its unique style of service. Meanwhile, Sears highlighted in the shop for Lands' End clothing sales, with the company and share customer resources. Finally in 2002, a quarter of Lands' End clothing company with the introduction of Sears operating profit in excess of 10% and the Lands' End catalog company's sales in the past have also maintained good sales performance. Growth in the scale of the need for a comprehensive merger integration and expand their scope of operation, concentrate on the growth of the scale of demand for a major merger of the Business Integration. If successful, it is necessary to conduct all-round integration of the various fields in order to obtain the value of encouraging mergers and acquisitions. In the above-mentioned case, we have analyzed those in the year after the merger announcement stock price exceeds the size counterparts who merger. All the good performance of the companies are all the mergers and acquisitions instead of the poor half of the share prices of companies conducted a comprehensive merger The remaining companies is a fundamental part, or no merger. A famous but extreme full-scale M & As is the case in December 1998 British Petroleum (BP) Amoco merger of the company. BP Chief Executive John Browne of those non-interference in the integration of large-scale investment companies errors, He found that in such mergers access to all interests, "it is necessary to establish a common process and standards common values and each employee has authorized methods of work of a single organization. "Mr. Browne quickly to start work to achieve this target. Amoco completion of the merger after the 100 days, he has the main work of the senior management deployment. for the largest-scale layoffs, including temporary dismissal of 10,000 employees, BP will be the organizational structure and management model applied to the new company. BP Amoco Corporation absorbed so completely that appeared in an internal joke widely circulated : "How do you Amoco made this sound? The answer is : "BP ', and Amoco is not the pronunciation. "Amoco some of the senior management is disappointed to withdraw from the company. Even so, BP in a year that is expected to achieve two billion dollars in cost savings, than originally planned one year in advance. its shares because of the performance of the company and the better the previous 100 days, it rose by nearly 11% and transactions a year after the announcement, its shares than petroleum gas index 17% higher. Merger must adhere to the basic tenets of M & A basic principles Jimmy including the size and scope of both factors. When M & A target companies, taking into account any time of the merger, keep employees, customers and shareholders is a very important priority. The goal is to achieve the expected investment returns. Philips Medical System and the Royal Netherlands medical diagnosis and monitoring patients control the experience of how to do this. Philips medical imaging products company, such as ultrasound and magnetic resonance imaging equipment. Siemens Medical Solution Corporation and GE OEC Medical Department Marketing companies competitive. In 1998-2001, Philips pharmaceutical companies continuously rapid merger of the four enterprises. compliance with the basic principles established procurement Hospital Group to reduce costs, Philips pharmaceutical companies and the broader needs of the areas of product lines and greater market share and maintain its competitiveness edge. These mergers and acquisitions made from the Philips company is lagging far behind the rise to the third position with the Siemens par - home, and the product line has made tremendous improvement. access to the series of mergers and profits from the enterprise to pay ongoing integration efforts edge. In October 2001, when the last one completed mergers and acquisitions, Philips in the six-month period to create a 17 "synergies research and emergency response teams." Their duty is to To save costs and increase revenue potential excavation. from the 500 steps to the first step, These teams initially focus on the highest return, For example, integration of independent product line. They return to the long-term program temporarily put aside, For example, the re-engineering imaging technology supply chain integration or sales programs (requiring different sales techniques). Throughout the process, Before Philips Electronics (Philips supervision of the company's pharmaceutical companies operate), president of the North American Wi lliam Curran called on his staff to focus their attention on the greatest return onto the acquisition. After five and a half months These groups established by the synergies (cost savings and revenue growth) are more than three times. the best interests of return from the IT integration; The second type of benefits the CT scan, X-ray machines , the magnetic resonance imaging machine sales and the integration services. 2004 , Philips pharmaceutical companies over the operating synergies through access to the 230 million euros expected goals , in February 2004 achieved a 3.42 millions of euros. allow staff to focus on work instead of M & A is through mergers and concentrated efforts, the company not only the ex post harvest huge profits and also because employees are a result of decentralization of energy from the reaction of mergers and acquisitions. restrictions on mergers and acquisitions , the first line to help employees focus on the work which This acquisition is a key success factor. In fact , the most successful mergers were only less than 10% of its management skills applied to the merger will be successful. They only concern Few major leaders , and adopted for other managers to participate in the Committee to achieve fought. When headquartered in Singapore Kepp el Offshore & Marine (KOM) in 2002 through the merger of the two companies established - up They are already familiar with these basic tenets of the merger. Keppel FELS Energy & Infr astructure this production offshore drilling platforms and Keppel Hitachi Zosen this Ship repair and conversion of the vessel for the storage of oil companies are Keppel Corporation , and two small companies are also part of the same operation within the framework of competition. Since 2002 the industry is prosperous year , the company's CEO KOM Choo Chiau Beng realized he could not because of mergers and acquisitions and scattered all employees signed the contract to complete the works on time and energy. Choo early in the new company on the appointment of the leaders to keep members work will focus on the work. He only had annexed some of the high-return, high efficiency , a strategic role for the sector. Company mergers and acquisitions in the first year He combined with 10% of the funds (total capital to 20 million Singapore dollars) for small-scale industries and to facilitate the merger Treasury flourish personnel. When the new company during the M & A win big orders when a , Choo's efforts were rewarded. This order is simply impossible before the merger received. While any M & A will lead to increased costs , but Keppel in 2002, or to record income in 2001 than the 35% growth , and the profit is 169% of the growth. More importantly, the , Keppel Corporation completed the acquisition within six months after exceeding its cost savings and revenue growth target of 100%. most finally, like Keppel, BP, Philips, ITW , the acquisition of Sears who learned through experience who has been mergers and acquisitions to consider the issue : the successful integration may make or break transactions orbit. But they also know that only a few companies did not understand the question : the need to implement the merger, such as sales and profits, according to their investment philosophy , they can greatly improve the success of the merger inadequate.