The Determinants on the Success of Mergers and Acquisitions

Business School, Central University of Finance and Economics, Beijing, 100081, China

^* Corresponding author: 2021311379@email.cufe.edu.cn

Abstract

In recent years, economic globalization has deepened and the number of problems faced by enterprises has increased, and some of them have undertaken mergers and acquisitions (M&As) in order to better face the challenges brought about by the changes of the times. At the end of the 20th century, the merger of the two American oil giants, Exxon and Mobil, caused a great uproar and played a major role in the growth of the scale of M&A in the future. However, for enterprises, its purpose is not only to pursue the expansion of the scale of the form, but to bring greater benefits, to reach the internal integration. Not all mergers and acquisitions can achieve the purpose of its overall efficiency, which, a considerable part of the factors for the performance of mergers and acquisitions have an impact. Synergies, core technologies and cultural differences are the most important determinants. Synergy effect pursues M&A to achieve the effect of “1+1>2”, core technology. Technology M&A emphasizes the important role of technological innovation. And cultural differences involve all aspects of harmony between enterprises. Therefore, in the process of M&A, it is necessary to fully consider the impact of these three aspects of each enterprise on the overall, in order to maximize the benefits of M&A.