LED integration of mergers and acquisitions intensified after the high temperature"

In the process of industrial development will be industrial upgrading, industrial integration, the industrial upgrading is the industry itself in technology, management, a fundamental breakthrough and the innovation of the system, known as "the creative destruction". The industrial integration is the external structure of the industry and its own, on the scale of effective allocation and restructuring, to achieve maximum benefits, functional optimization.

In recent years, China's LED lighting has been a qualitative development, but compared with Europe and Japan and South Korea enterprise has a complete industrial chain, strong capital, first-class technology, patent, domestic enterprises are still in large quantity, small scale, lack of core technology of the state. The current market has improved, the industry gradually matured, the international giants have also force the domestic LED lighting market occasion, domestic enterprises must make corresponding response. The industry consolidation has become an inevitable choice. In fact, the consolidation of the industry has started since last year. The strength of the Elec-Tech, nationstar, optoelectronics and other enterprises have begun to integrate the whole industry chain, especially the Elec-Tech action most concern. Since the second half of 2012, Elec-Tech has NVC, while other investment company assault. Elec-Tech has been completed from LED wafer, chip to the package to the application (lighting, display) the integration of industrial chain layout.

This trend has become increasingly evident this year, if you use two words to sum up in July this year, the focus of the development of the LED industry that is integration". In fact, this is one of the main trends of the current development of the industry, but in the recent performance of the most prominent, there is really hot potential trend. It is undeniable that this is the direction of the industry towards rational development. The merger and integration within the industry also makes the big person more, the strong stronger situation, this integration is also reflected from the side of the current hot LED market, its market size, economies of scale and scope economy effect is obvious, but also shows homogeneous technological commonness and commercial operation mode of LED industry seriously. It is not difficult to predict that the future competition will continue to play the "spring and Autumn Period" trend.

The integration of acquisitions looks easy, but actually it is full of various challenges, as Charles Guest had in his book "one hundred years of mergers and acquisitions" wrote in "new and tougher accounting standards and can not deny the fact that many transactions purely for their own interests, they will only bring great benefits to the Target Corp shareholders and managers and investment banks. However, mergers and acquisitions of the new shareholders of the company will be a result of its subsequent effects of chilling. History supports the conclusion that most of the deals have failed in the first place - no matter how you manage them after the transaction is completed. "Throw such a conclusion that some alarmist, the so-called Good medicine is bitter., this is nothing more than to Faithful words grate upon the ear., integration of M & a prophylactic-a best.

From the current LED industry speaking, count the recent mergers and acquisitions in the industry, integration, joint ventures and other cases.

In fact, this month the acquisition case more than these, there are two in the field of LED display above, Dior and Lei Mai Rui in the display field is good, and the acquisition of Mai Rui Furi Electronics in LED business development since the sluggish performance, especially the big screen business, obviously is the value of its acquisition of Mai Rui powerful display business, Furi Electronics have a capital advantage, while the sharp step have market channels and technology accumulation, which is the acquisition of value factors. For example, TCL, Ruifeng, canyuan cooperation can be described as powerful combination, the leading company of TCL group, holding 51%, about an investment of 102 million yuan (about 495 million NT); REFOND is 25% shares, invested 50 million yuan; the canyuan Yuxing enterprises accounted for 24%, invested RMB 48 million yuan. Canyuan photoelectricity is one of Taiwan's largest producers of LED chips, REFOND is LED package of well-known domestic enterprises, while the TV giant TCL has downstream channels and product resources. According to the announcement, Huarui photoelectric main business: LED package, backlight module, lighting module and related products R & D, manufacturing, sales; related industries LED chip, package, application modules, application of investment products etc.. This is an integrated company, the chip to an integrated application.

See the LED industry mergers and acquisitions, maturity is indeed a good thing, but mergers and acquisitions how the internal integration of various resources, will play to the best is the challenges facing real enterprises, but also test the final acquisition success criteria.

In fact, the amount of cash needed to integrate an enterprise is a few times the price of the original merger. Do not think that is enough to spend 300 million yuan to buy business, follow up should give more money to deal with business, especially before the downhill to business promotion, down from orbit to push up the track, do a lot of investment in the market, must have liquidity supplement inventory; within 6 to 12 months to complete in the second after the merger, it may appear the merged enterprise management and employee commitment and dedication to reduce the decline of mergers and acquisitions business productivity, neglect of different culture, management and leadership style caused by the conflict increases, key management and staff in the gradual loss of customer base and market share of the destruction of the phenomenon. From the case of mergers and acquisitions at home and abroad, mergers and acquisitions is by no means a simple combination of two companies or a combination of forms, each successful merger and acquisition and integration management after the merger is not without contact, so after the merger is needed