Footwear Industry Must Take A Cool View Of Overseas Mergers And Acquisitions

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< p style= "text-align: center > > strong > /strong > < a > href=" http://sjfzxm.com/news/index_s.asp "> strong > shoes and clothing industry < /strong > > < > > must take a cool view of overseas M & a tide. The success rate is only 20%.

< p > the success rate of overseas mergers and acquisitions is only about 20%.

In the face of enthusiastic investors, the experts showed a sobering fact.

M & A is a strategic move for brand, and it is also a high-risk investment.

In order to speed up brand expansion and layout market, the tide of mergers and acquisitions began to flow in the footwear industry.

"M & A is not as simple as buying a house."

A shoe vendor in Wenzhou laughs at the idea of mergers and acquisitions.

Now, tens of millions of dollars or even billions of dollars in the amount of purchase, so that the domestic shoe and clothing enterprises have to consider carefully, decide and move.

First, think about whether you have the ability to buy.

The brand of international shoes and clothing has developed earlier. Some brands have already formed certain influence in the world, and the relative purchase price is higher. Moreover, the acquisition of brand is not only simply bought, but also in late stage.

The benefits brought by "foreign brands" to enterprises can not be immediately fulfilled. Maybe the cycle is relatively long. Therefore, before takeover, enterprises should make a good account of whether or not they can acquire, how much funds they can buy for international brands? Secondly, which brand should be acquired? Not all brands are suitable for your enterprises, and shoe companies can not buy for acquisitions, and are caught in a blind trend of buying.

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< p > footwear companies acquire international brands and seek expansion. Only by evaluating their own corporate culture, product positioning, management capabilities and business strategies, can they keep their heads clear in the rush to buy brands in order to succeed.

The success rate of overseas mergers and acquisitions is only about 20%.

Why is the success rate of overseas M & a so low? < /p >

< p > because of its risks, it comes from many factors: language, culture, legal definition, differences in business philosophy, insufficient ability to master pnational pactions and operations, political risks in target countries, economic and economic institutional differences, increased management and operation costs, financing and financial risks, exchange rate risks, and integration capabilities after mergers and acquisitions.

Any factor is enough to make the whole merger fail.

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< p > M & amp; a looks very beautiful, but many entrepreneurs have experienced the cold and biting after the test.

What is the purpose of the acquisition of overseas a href= "http://sjfzxm.com/news/index_f.asp" > brand > /a? How to create more value for the brand that is purchased? "For these two problems, we must clarify our thinking before merging.

However, the core is not even the purpose. Many entrepreneurs found that after the merger, the ship was not controlled by itself to the unexpected direction.

The brand, which was very influential and has a high market share, gradually lost its influence after the acquisition, and even faded out of the market.

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< p >, therefore, the experts put forward several suggestions for overseas mergers and Acquisitions: first, to carry out net worth survey of M & A targets, we need to know as far as possible the specific circumstances of M & A targets.

In fact, carrying out the net value survey is very difficult, but if we can do a good net value survey, the success rate of cross-border mergers and acquisitions will greatly increase; two, we should make full use of bilateral and multilateral investment agreements; three, we should focus on the management and integration after mergers and acquisitions; four, the merger agreements signed by the two parties should be comprehensive and meticulous, and we should clarify the rights and obligations of the two parties and fulfill their responsibilities, avoid the difficulty of determining responsibility when disputes arise, and five, make use of the reasonable trading structure to reduce tax risks; six, we should carefully choose the jurisdiction law and dispute settlement method; seven, we should hire professional service agencies as early as possible.

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