1. Principles of compliance with laws and regulations

The direct result of corporate mergers and acquisitions is the disappearance of the legal person status of the target enterprise or the change of control rights. Therefore, it is necessary to carry out inspections on various elements of the target enterprise. Rearrange to reflect the acquiring party’s M&A intentions, business ideas and strategic goals. But all this cannot just start from ideal wishes, because corporate behavior is subject to laws and regulations, and the operation of corporate mergers and acquisitions is also subject to laws and regulations. During the integration process, intellectual property rights involving ownership, operating rights, mortgage rights, pledge rights and other property rights, patents, trademarks, copyrights, invention rights, discovery rights and other scientific and technological achievements, as well as purchases and sales, leasing, contracting, lending, The establishment, change and termination of claims such as transportation, entrustment, employment, technology and insurance must be carried out in accordance with the law. Only in this way can we obtain legal protection and avoid various legal risks from localities, departments and others.

2. Effectiveness Principle

Integration should be based on actual results as the basic criterion, that is, in the process of integrating assets, finance, personnel and other elements, the goal of maximizing benefits must be adhered to, regardless of Whatever methods and means are adopted, they should ensure the actual effect of optimizing the allocation of resources and improving the competitiveness of the enterprise. These actual effects can be manifested in the improvement of the economic benefits of the enterprise after the integration, the stability of the internal employees of the enterprise, the improvement of the corporate image and Full utilization of various elements, etc. Here we should avoid flashy and quick success practices in integration.

3. Principle of complementarity of advantages

An enterprise is an economic entity composed of various elements, and the various related elements constitute a dynamic balance. This dynamic balance is the key factor in the A state of existence under certain conditions at a certain time. What needs to be noted here is that balance and the best combination are for different companies. The advantages of company A are not necessarily the advantages of company B. The disadvantages of company A are not necessarily the disadvantages of company B. The best combination should be the advantages that adapt to the environment. complementary. Therefore, during the integration process, we must start from the overall advantages of integration and be good at making trade-offs. Through complementary advantages, we can achieve an ideal combination under new environments and new conditions.

4. Principle of operability

The procedures and steps involved in mergers and acquisitions integration should be operable under realistic conditions, or the conditions or facilities required for operation should be operable under certain conditions. It can be created or obtained in other ways, and there are no insurmountable legal and factual obstacles. The method, content and results of integration should be easy for shareholders to know, understand and control.

5. Systematic Principle

M&A integration itself is a systematic project, involving the integration of various elements of the enterprise. The lack of any aspect may lead to the failure of the entire M&A. . System integration content should include:

(1) Strategic integration. This is the repositioning of the strategic direction of the enterprise after the merger and acquisition, which is related to the company's long-term development policies and strategies;

(2) Organization and system integration. This is to establish a new organizational structure, re-departmentalize and institutionalize the various activities of the enterprise, and determine the clear responsibilities and rights of each department;

(3) Financial integration. Ensure the financial stability, continuity and unity of all parties, so that the post-merger enterprise can establish a good image in the capital market as soon as possible;

(4) Human resources integration. Enterprises must readjust and allocate managers and technical personnel, and reorganize and adjust employees so that the enterprise can operate normally and effectively;

(5) Cultural integration. Including the mutual integration and absorption of the values, entrepreneurial spirit, leadership style and behavioral methods of both parties to the merger and acquisition, building a corporate culture acceptable to both parties, and improving the same psychological prerequisite for various coordination activities;

(6) Brand integration. For both the target company and the acquiring company, brand assets are the focus of their development and operations, and the construction of brand integration is an indispensable strategic measure, which determines whether the synergies brought about by the integration work can be realized.