Background

   Currently, the listed companies and conglomerates are actively conducting Mergers and Acquisitions both domestic and abroad. Although experienced months of researches and negotiations to finally complete a M&A transaction, the management of the acquirers may still face a series of questions.

·How to merger two companies, which share no corporate cultures and backgrounds in common?

·How to utilize the resources when two companies have complementary advantages in different fields?

·How to cut down operation cost to realize ideal synergies?

·How to stabilize the management and other employees in the target companies?

·How to manage a company with larger scale?

Integration: value and content

   The key point of an investment/Mergers & Acquisitions(M&A) lies in whether the investor/acquirer is able to effectively solve the problems occur during the integration phase. 

   A comprehensive Integration Solution shall cover the following contents: Integration of development strategies, Integration of Supply Chains, Integration of Production Management, Integration of Distribution Channels, Integration of R&D, Integration of IT System, Integration of HR and Compensation & Benefit Systems, Integration of Accounting Systems, Integration of Corporate Cultures, and etc. The above content may vary with each case. 

   Integration between companies is neither simply overtaking the target company’s intangible assets and mentalities, nor operating with complete independences. Integration is to organically merge different operating systems into one so as to enhance the values as a whole group.

   A successful Integration should implement the whole transaction process with the integration mentalities. Therefore, the Integration advisors should involve into the transaction in the middle term. Integration emphasizes on maximize the values of both acquirer and target company in order to realize a steady transition from one sole operation into a part of the whole group.

Huaran Solution

   Huaran Integration team is led by our partner with more than 20 years’ experience in cross-border transaction and integration. The Integration team will get involved during the Due Diligence stage of the transaction. Base on the understanding of the functions of each department, Huaran team will be able to develop a feasible integration solution regarding the target company. After the transaction process, Huaran would build up with the professionals from both acquirer and the target company to implement the solution. The combination of the three parties would carry out the detailed integration scheme and escort the full execution to reach the pre-set goals.