Case playback:

　　A Automotive Group Limited by Share Ltd is China's A share market the largest vehicle listing Corporation. B auto Limited by Share Ltd is South Korea a comprehensive automobile manufacturing company, is a leading manufacturer of SUV ∙ RV. Under the mismanagement, won serious depreciation, the market downturn of three heavy blow, B company in a huge debt. In 2004, A acquired B company 51.33% of the equity. Took over B company, A company integration plan was South Korea's trade unions strongly resisted, labor negotiations eventually rupture. In 2009, international oil prices soaring, B company's home market sales decline, eventually entered bankruptcy restructuring program, A lost control of B company.

　　Intensive analysis:

　　Due diligence, is refers to before the start of the buyer in M & A, with the target enterprise, the target enterprise historical data and documents, management background, market risk, management risk, technology risk and capital risk in-depth review, in order to verify the target businesses to provide information, find out potential opportunities, reduce and avoid risks in mergers and acquisitions. In the implementation of M & a strategy of mergers and acquisitions shall, through due diligence, comprehensive and in-depth details the acquisition targets and their country's political, economic and cultural geography. May appear in the careful analysis of M & A risks and the corresponding solutions, formulate appropriate merger plan, to be steadfast.

　　In this case, A company had hoped to obtain their brand and manufacturing technology through the holding company B, shortcut to find the way to the global market. But due to the lack of the detailed information of the collection, A company to B company's production management level, equipment status, technical research and development ability, the labor law risk not fully estimate and proper arrangements. With the global financial crisis deepened, some fundamental issues of B company internal emerge gradually, and the comprehensive effects of other factors, the B company went bankrupt, A the major shareholder of the company also suffered heavy losses.

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