Necessary conditions for international M & A of China's machine tool industry

At present, the basic conditions for international M & A of China's machine tool industry are becoming more and more mature: the support of the government (foreign exchange investment, policy encouragement) and the support of relevant banks; the ability of enterprises to pay for the internal and foreign exchange of M & A projects; the ability of enterprises and industries to identify and absorb the value of technical soft assets of M & A projects; the potential of further technology improvement; and the continuation of products. To develop the possibility, economy and operation ability, in addition to the prudent treatment of the acquirer, the more important step is to rely on the strength of the international professional team to assess the tangible and intangible assets of the acquired object, the assessment of the operating conditions and expected benefits in recent years, debts, labor relations, legal affairs, tax and environmental protection and other current situations and potential problems. Conduct detailed and careful review and assessment, and conduct effective "due diligence".

The overall business management ability of Chinese enterprises after M & A is a very important link, but in the specific and normal business operation, we can also adopt the policy of "localization of management mode" by using local talents for business transformation, including employing different levels of "professional management".

Integration of basic concepts of international M & A

International M & A is a routine activity in the field of international economy. There are two large-scale M & A activities in the international machine tool industry. One is that Thyssen steel group of Germany acquired more than half of the leading machine tool enterprises in the United States in the early 1980s. By the end of the 1990s, the American MAG consortium bought back all these machine tool enterprises. As for single merger and acquisition, it is very common. In the past, we seldom participated in, did not have deep experience, and missed some opportunities (for example, when we purchased machine tools in the United States in 1976, we met Richon, a high-tech enterprise in the United States, who offered to accept M & A, but we did not accept it at that time due to our lack of understanding and material conditions). In fact, the completion of M & A (especially 100% holding) is to obtain the management right of the other company (including the technology ownership with strong competitiveness). As for some sensitive technologies related to military industry, they need to be handled properly because they are related to the political environment. Some people in China generally think that it is impossible to acquire the technology of M & A enterprises. This is a misunderstanding.

As for whether the employees of the acquired party can serve us seriously after the acquisition, this is also a concern of many people in China. For this issue, we have organized staff at all levels of the other party for many times to discuss and find out the ideological concerns. Employees of the other party are concerned about three major issues:

First, will the enterprises be moved to China? Second, will they be asked to change their careers? Third, will China send a large number of people to replace their jobs. When we explain that these problems do not exist, they all agree: "as long as you contribute to make the enterprise operate normally, we have no reason not to work well, because our capitalist society is used to" working for capital ", and does not care about the change of investors."