Case playback:

　　During the period from 1997 to 2001, A investment company to the industry integration as the slogan, three listing Corporation rely on holding, has purchased hundreds of enterprises, formed with the food and beverage processing, auto parts, electric tool for large enterprise groups, cement pillar. In 2001 July, the face of China's stock market crash, A investment company into more industry through mergers and acquisitions field. In these enterprises as the carrier, A investment company to obtain a large number of loan capital, effectively improve the three listing Corporation fundamentals. But because of poor consolidation, other non-listed companies have not formed the stable cash flow, but the scale of bad debts is more and more big. In 2003, the government is aware of the rapid expansion of A investment risk, began to take some measures to limit their access to certain industries, while increasing the limit illegal funds into the stock market. In order to alleviate the debt pressure and government restrictions, A investment company to intensive stock pledge, causes the market confidence is gradually lost. In 2004 April, all of the stock of A investment companies involved in all dropped, subsidiaries and affiliated enterprises also fast separation, to build the industrial chain for instant collapse, was eventually B Asset Management Co whole managed.

　　Intensive analysis:

　　M & A party hopes to achieve profit growth enterprise and entrepreneurship and improve, but the failure of M & A cases can meet the eye everywhere, post-merger integration is not in place is one of the main factors. Mergers and acquisitions, mergers and acquisitions to obtain refers to ownership of assets, stock or the control of target enterprise, systematic arrangement of production factors, the process in order to create and increase enterprise value. M & A integration is a systems engineering, involves a variety of factors of enterprises. Such as, ownership, management right, mortgage, pledge, patent, trademark, copyright, right of invention, purchase and sale, lease, contract, loan, transportation, entrust, employment, technology and insurance etc.. These factors can be divided into strategic integration, integration of resources, ability to integrate and culture four aspects of integration, only by combining them organically, to form a complementary advantages, resource sharing, coordinated operation of the system, so as to realize the M & A value goal.

　　In this case, A investment company through mergers and acquisitions to achieve the ultra-conventional development, but not through the effective integration of the formation of core business ability. When the fund chain break, the integration of A investment company can not bring enough cash to flow, and not the one to tide over the difficulties, eventually led to the collapse of the group. So, after the merger acquisition target enterprise through the capital operation, if not through the effective integration of entities, it is difficult to form the new competitive advantage, and various big enterprise disease, cause diseconomies of scale.

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