Is It A Joy Or Worry For Local Enterprises To Expand Overseas Markets To Acquire Foreign Brands?

In recent years, when foreign brands continue to increase the encirclement and suppression of mergers and acquisitions in China's market, domestic enterprises have also started overseas mergers and acquisitions, and the scale of mergers and acquisitions is also gradually expanding. The appreciation of the renminbi and the impact of the international financial crisis on European and American enterprises provide more impetus and favorable external environment for local enterprises to go abroad. What opportunities can foreign mergers and acquisitions bring to local enterprises? What obstacles can they face overseas mergers and acquisitions? Is it a great gluttonous feast for local enterprises to rush to buy foreign brands, or is it a gripping dinner full of traps? In this article, as a management consultant and trainer of research and service enterprises, Mr. Jack will make a big deal. Local brand The topic of overseas mergers and acquisitions is discussed with readers.

First, overseas mergers and acquisitions may become "traps".

Overseas M & A is a good development and expansion mode for enterprises, but it is also a road full of thorns. While having opportunities, there are still great risks. Historically, the risk of failure in overseas mergers and acquisitions is far greater than the chance of success. There are some insurmountable obstacles for M & A to make it possible to turn from pie to trap at any time.

Due to differences in economic development level and political system, countries also have different legal provisions for foreign investment. The regulation and regulation of each country to overseas merger and acquisition enterprises is also very complicated, involving foreign investment law, antimonopoly law, company law, labor law, and intellectual property law. Any kind of law may bring obstacles to mergers and acquisitions enterprises, resulting in failure of mergers and acquisitions.

At the same time, because of the different ways of operation between different enterprises, there must be obstacles to the management of enterprises in the process of overseas mergers and acquisitions. Different countries, different companies and different leaders have different management systems. Some companies emphasize guidance, some emphasize rewards and punishments. In terms of management system, in terms of managerial talent, Chinese enterprises show lack of executives with international experience, and lack of managers has become an obstacle to local enterprises' overseas mergers and acquisitions. When the local enterprises do overseas mergers and acquisitions, they should not only buy it, but also be able to manage.

The gap between cultures is more difficult to overcome than differences in laws and management systems. According to the cross-cultural management theory in the three dimensional marketing theory, Mr. Lejk thinks that every enterprise is unique DNA, has a unique enterprise gene, whether the culture of the enterprise can merge well after the merger and acquisition, whether the enterprise's culture has exclusiveness is very important, and cross border mergers and acquisitions, different cultures of different nations and different races make the cultural difference the biggest obstacle to overseas mergers and acquisitions. In those days, TCL's overseas acquisition of France Thomson electronics has caused widespread discussion and report in Chinese and foreign media. TCL is very optimistic about this cross-border M & A, but after the merger, TCL has fallen into a bottomless pit, and finally lost a lot. The conflicts and values of the two companies have created enormous obstacles and difficulties for the integration after the merger. TCL's culture and values have not been recognized by the original French team, and have been passively and invisibly boycotted by the original company members. The culture of the two sides can not be well blended, leading to the Predicament of the company's operation.

Therefore, overseas mergers and acquisitions of local enterprises should not only consider whether they have the money to invest, but also fully consider whether they have enough management and cultural integration ability, and the ability to understand the law. So many difficulties or "traps", is it possible for their own enterprises to overcome them? These are the questions that every business leader needs to think carefully when making decisions for mergers and acquisitions.

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Two, overseas mergers and acquisitions "money" scenery beautiful

M & A is a means of further expansion after the enterprise has developed to a certain stage and accumulated a certain amount of original capital. It is a positive attempt for local enterprises to go abroad and challenge overseas markets. Overseas mergers and acquisitions also provide attractive strategic opportunities for local enterprises in brand, technology and market development.

Through the development of international mergers and acquisitions, the brand of local enterprises can rely on "foreign brands" to enhance themselves. brand International recognition and influence. After the completion of the largest overseas merger case in China's food industry last year, Shanghai Guangming Food Group has recently revealed that it wants to buy the second major breakfast cereal brand, vitatmai, for 10 billion yuan. It is worth noting that in addition to Guangming Food, domestic food giants such as COFCO, new hope, Wahaha and so on have begun to covet "foreign brands", the purpose is obvious. Under the background of frequent domestic food safety incidents, consumers' trust in domestic food brands is decreasing. Opening up overseas M & a mode, with the popularity and influence of "foreign brands", can help enterprises to gain international market recognition and regain the trust of domestic consumers and enhance their market competitiveness.

According to the international management theory of Liu Jack's original course "three dimensional marketing theory", overseas M & A also provides a good opportunity for domestic enterprises to acquire advanced technology of other countries, and can provide impetus for the long-term development of enterprises. After the international financial crisis, many independent brand car companies began to acquire and master advanced core technologies through overseas acquisitions. In 2010, Geely completed the acquisition of Volvo cars from Ford motor, and Volvo spanferred technology to Geely, which is one of the follow-up achievements of Geely's cross-border mergers and acquisitions. According to the latest agreement reached by Volvo and Geely, Geely will use Volvo authorized technology to cooperate with Volvo to jointly develop a series of new environmental protection engines and a series of new energy vehicles. BYD also acquired the core technology of automobile dies in a very short time by purchasing the Japanese die factory.

Overseas M & A is undoubtedly an important means for enterprises to further develop the market and expand the market scale. At the beginning of 2012, Sany announced in January 30th that it had invested 360 million euros to acquire Maistre, a German construction machinery company, and made a big step towards the international brand. In addition to the attraction of advanced technology in Europe, what Sany values more is the significance of the acquisition to enterprises in market development. 31 the share in the domestic market has been very large, and the vision has begun to look at the global market, and poster is in a leading position outside many other regions outside China. It has built manufacturing bases in many countries and sells all over the world. With the help of poster, the marketing network of the brand has great significance for the expansion of 31 overseas markets, such as Europe and America, and has great influence on the development of new products and the implementation of global strategy in the future.

Three, overseas mergers and acquisitions need calm choice and cautious attack.

Facing the thorny road of overseas mergers and acquisitions, local enterprises should make a calm and careful analysis and assessment of overseas mergers and acquisitions before making decisions on overseas mergers and acquisitions from various aspects such as strategy formulation, investigation and research, and post integration capabilities. In a new era of redefining the global market, Chinese enterprises should learn to choose, not blindly attack.

Enterprises should have clear reasons for mergers and acquisitions in line with company strategy, and M & A should be consistent with long-term strategic objectives of enterprises. No matter what kind of spanaction, success and failure always coexist, but if there is no preparation, failure is inevitable. Due to asymmetric information before mergers and acquisitions, it is necessary to do detailed investigation and research as far as possible. Miss Jack believes that overseas mergers and acquisitions are naturally more risky because of their cross cultural background. Therefore, investigation and research in overseas mergers and acquisitions is more important. The survey includes the laws and regulations of the host country, and evaluates the strengths, weaknesses and values of the potential Target Corp, so as to determine whether or not the Target Corp can, or to what extent, further promote the strategic objectives of the enterprise. Later integration capability mainly includes cultural integration and management integration capabilities. Enterprises should be able to guarantee effective communication with the M & A companies in culture, and enhance mutual understanding and trust and cooperation. The company must also set up a pre established proper placement system, effectively release their potential and enthusiasm for the new company, and have a comprehensive set of assessment criteria and incentive mechanisms to retain key talents. Only when the two sides have certain integration ability in the integration of culture and resources, can enterprises effectively shorten the integration period after the merger and acquisition, improve their efficiency, and enable the enterprises to enter the new track of development.