Lenovo is an example of a successful cross-border M&A, as it displays each of the components of the M&A Synergies Framework.
This series uses the Mergers and Acquisitions Synergies Framework to explore the careful way Lenovo managed cultural integration with IBM to become a world leader in computer sales.
With differences in accounting standards and valuation, the Lenovo-IBM PC merger required attention to both the accounting and finance aspects of the business.
Lenovo made adjustments that influenced the way meetings were organized and conducted, along with other changes, to ensure behavioral/cultural differences would have little impact on the merger.
How Lenovo management avoided miscommunication and took proactive steps to avoid obstacles that are common for the merger of two very different companies.
Being aware of the public perception can help soften the blows of media opposition. How Lenovo’s relocation to the US helped overcome some of the environmental concerns of the merger.
Lenovo recognized that leadership and the decision-making processes of management would contribute to the success or failure of the merger.
State-owned entities account for a major portion of China's economy, but their increased exposure to debt and corruption could threaten their feasibility moving forward.
Chinese qiyejituan (business groups) have had a profound impact on Chinese business and reflect many important aspects of Chinese culture.
Chinese business ownership can be difficult to determine because of government influences and
unfamiliar patterns of direct and indirect ownership.