A Case Study on the Post-Merger Integration in Taiwanese Company
Date Issued
2009
Date
2009
Author(s)
Lin, Jui-Chuan
Abstract
In light of rapid and drastic changes in business environment and technology development，mergers and acquisitions (M&A) have become a dominant strategy companies adopt to timely seize growth opportunities in the 21st century. Through M&A，a company can quickly obtain talent，technology，production capacity or market share to realize its vision and to create shareholder value. Nevertheless，M&A，like other major business investments，can be a catastrophic failure without thorough risk assessment and due diligence. In addition， organizational and cultural integration represents the ultimate challenge in the entire M&A execution. Therefore，a comprehensive and smooth integration would be a cornerstone of a successful M&A to achieve its synergistic benefits.ased on case study approach，the present study looks into post-merger integration processes of two major M&A cases among major players in Taiwan’s thin film transistor liquid crystal display panels (TFT-LCD) industry with a focus on identifying critical factors underlying AUO’s two successful M&A moves. After an M&A in 2001 and 2006 respectively，AUO’s annual revenues surged 32.41 times from NT$ 14.8 billion in 2000 to NT$ 479.7 billion in 2007. These two mergers have also made AUO Taiwan''s largest and a worldwide top 3 manufacturer of TFT-LCD and currently houses a staff of more than 43,000 employees throughout its global operations spreading across Taiwan，China，Japan， Singapore，South Korea，U.S. and Europe.his study shows that the key determinant for AUO’s success is a fast and effective organizational and cultural integration after each M&A. In addition，M&A’s synergy can be maximized and sustained if interests among customers，shareholders，employees and business partners are well balanced. This study also indicates that AUO undertook this approach by well balancing the interests of customers and shareholders to secure the expected benefits of these two M&As. Moreover，M&A is tantamount to change. Yet，to lead a successful change， a company must first be able to redcue the resistance to change through people mindset change. This case study also addresses how AUO tackled this challenge and molded a new corporate culture by creating a new vision，delivering and solidifying short-term results，to pave the way for the two successful mergers.
Subjects
Optoelectronics Industry
Post-merger Integration
HR Management
Type
thesis
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