Based on | fuzzy comprehensive evaluation method | of M & A | Culture | Risk

Abstract Based on the M & A risk factor analysis of corporate Culture, corporate Culture, the establishment of M & A risk assessment system, fuzzy comprehensive evaluation method for quantitative analysis, the M & A corporate Culture risk assessment more effective.

Keywords: mergers and acquisitions, corporate Culture, risk, assessment

First, M & A risk characteristics of corporate Culture and type of
Binggou reorganization of the corporate culture risk is in mergers and acquisitions, due to the different cultures in the intersection when the complexity, uncertainty, leading to actual earnings and expected returns deviate from the target occurred, and even the possibility of failure of the business activities it has objectivity, hidden, complexity, controllability and other characteristics, which runs through M & A strategy formulation, implementation and conduct M & M after a series of enterprise resource integration process, the direct impact on the effect of mergers and acquisitions .

M & Culture risks are the following forms: (a risk management: refers to the post-merger management model adopted by enterprises and management practices and other employees can be accepted by the acquisition of both the risk (2 risk communication: refers to the acquisition of , due to cultural differences that make the acquisition of both information transfer or exchange ideas blocked, resulting in misinterpretation and misunderstanding of the risks, (3) organizational risk: refers to the internal management of companies in mergers and acquisitions, due to different corporate cultures and management can not establish co-ordination between employees, thus affecting the stability of the organization's risk, (4) personnel risk: because of cultural differences and conflicts, some of the key management and technical personnel to leave the business, if not leave such a bad atmosphere make employees depression, work is not positive, reduces efficiency, resulting in the risk of the target difficult to achieve.

Second, M & A risk index system of enterprise culture
M & Culture Risk Index System, is a cultural risk assessment based on post-merger company can successfully achieve the integration of acquisitions and the ability to achieve the desired objective has an important role in guiding, and related to the usefulness of the evaluation results and correctness.

This spirit of scientific, systematic, qualitative and quantitative indicators of the principle of combining, combined with the characteristics of mergers and acquisitions business, drawing on some of the scholars of the M & A corporate culture of risk research, the M & A corporate culture of risk classified as facing risk management culture, organizational culture risk, communication, culture, culture of risk and the risk of four persons, while analyzing the impact of cultural risk factors, and according to Industry experts using the Delphi method to determine the fuzzy weight assessment, the initial establishment of evaluation index system and weight distribution , as shown in Table 1 (Table 1
Third, M & A corporate culture risk fuzzy comprehensive evaluation model
Fuzzy comprehensive evaluation is affected by many factors things to make a comprehensive evaluation of a very effective multi-factor evaluation method which transforms the fuzzy theory and the maximum membership degree principle, consider the evaluation of things and being done by various factors related to comprehensive evaluation in M ​​& A corporate culture risk factors involves a large number of complex phenomena and many not easily quantifiable factors, with ambiguity, in its evaluation, use fuzzy theory for quantitative treatment, the fuzzy comprehensive evaluation M & A culture method for comprehensive evaluation of risk is reasonable.

Fuzzy comprehensive evaluation method as follows:
1, to establish evaluation factors set. Established to assess the object of the main factors for the collection of elements, the factor U is divided into four subsets according to their attributes, denoted by U = {u1, u2, ..., u4}.

2, the establishment of evaluation factors set reviews Let cultural risk reviews set V = {v1, v2, v3, v4, v5} = {high, high, medium, low, low}. N = 5 is expressed as u different Rank of the membership.

3, established from U to V, single-factor evaluation matrix Ri. Ui for each evaluation indicators to assess a single, comprehensive evaluation can identify a single indicator based on the actual significance evaluation matrix Ri, using the Delphi method to determine the factors corresponding to each Ui in V in a variety of reviews of the membership matrix. It can be fuzzy model to evaluate the matrix.

4, gives the Ui in the weight of each index. Weight is an indicator that in the whole index system has an important degree. The actual calculation can score by experts to determine the index weight.

5, evaluation results obtained would be treated as a separate factor Ui, Ui with Bi as single indicators to assess the vector U to V may constitute the fuzzy evaluation matrix.

R = B ■ B ■ ... B ■ = b ■ b ■ ... b ■ b ■ b ■ ... b ■ ... ... ... ... b ■ b ■ ... b ■
Ui U in accordance with the degree of importance in the given weight, A = (a1, a2, ..., as, to get the final evaluation of the vector U B = A · R = (b1, b2, ..., bm. Do normalization of B treated in accordance with the principle of maximum membership degree, with the greatest degree of membership in B corresponding to the evaluation grade as an evaluation object level, is a comprehensive evaluation of the results.

Fourth, the application examples
With the evaluation model, M & A corporate culture of a comprehensive evaluation of the risk, according to Table 1 using the Delphi method to get the weight distribution is:
An indicator layer weight: A = (0.4,0.2,0.3,0.1
Two index layer weight:
A1 = (0.5,0.3,0.2, A2 = (0.6,0.4,
A3 = (0.4,0.3,0.3, A4 = (0.6,0.4)
Then, using the expert scoring method to determine two indicators of a subset of the target layer fuzzy evaluation matrix are:
R1 = 0.30.20.10.20.20.40.20.20.10.10.20.30.30.10.1
R2 = 0.20.40.10.20.10.30.10.30.10.2
R3 = 0.20.10.40.300.40.20.30.100.30.40.20.10
R4 = 0.30.20.30.10.10.20.10.40.30

Links to free download http://www.hi138.com two layer fuzzy evaluation indicators are:
B1 = A1 · R1
= (0.5,0.3,0.2 * 0.30.20.10.20.20.40.20.20.10.10.20.30.30.10.1
= (0.31,0.22,0.17,0.15,0.15)
Similarly:
B2 = A2 · R2
= (0.6,0.4 * 0.20.40.10.20.10.30.10.30.10.2
= (0.24,0.28,0.18,0.16,0.14
B3 = A3 · R3
= (0.4,0.3,0.3 * 0.20.10.40.300.40.20.30.100.30.40.20.10
= (0.29,0.22,0.31,0.18,0
B4 = A4 · R4
= (0.6,0.4 * 0.30.20.30.10.10.20.10.40.30
= (0.26,0.16,0.34,0.18,0.06
R = B ■ B ■ B ■ B ■ = 0.310.220.170.150.150.240.280.180.160.140.290.220.310.1800.260.160.340.180.06
The fuzzy comprehensive evaluation results: B = A · R, namely:
(0.4,0.2,0.3,0.1 * 0.310.220.170.150.150.240.280.180.160.140.290.220.310.1800.260.160.340.180.06
= (0.285,0.226,0.231,0.164,0.094
Comprehensive evaluation of the results of the various components of the vector B and 1, satisfies the normalization conditions of the resultant risk of this merger and reorganization of the corporate culture in relation to five levels of evaluation results. Finally, the evaluation results show that: in all the experts involved in the evaluation , 28.5% of the M & A risk assessment of corporate culture as "high", 22.6% evaluated as "high", 23.1% evaluated as "medium", 16.4% evaluated as "low" 9.4 percent described as "low . "decisions based on the principle of maximum membership, the M & A corporate culture risk level as" high. "
Based on the principle of maximum membership degree which only take into account the results of the maximum level, ignoring the other grades, so you can set V reviews the various types of reviews set the standard points, the risk of corporate culture come to M & A fuzzy evaluation of the final score. Five grades and the corresponding standard scores shown in Table 2 (Table 2)

So, the M & A corporate culture risk assessment of the final fuzzy score is calculated as follows:
100 × 0.285 +85 × 0.226 +70 × 0.231 +60 × 0.164 +45 × 0.094 = 77.91
This shows that the risks of mergers and acquisitions in corporate culture between the middle and higher level.

V. CONCLUSIONS
Corporate mergers and acquisitions will inevitably bring cultural risk, and only really identify risks, analyze the impact of various risks, in order to effectively prevent and avoid risks. In this paper, M & A corporate culture to identify risks, and through mergers and acquisitions that may occur The cultural analysis of risk factors, the establishment of M & A corporate culture risk assessment system, based on fuzzy theory and its fuzzy comprehensive evaluation for M & A corporate culture provides the basis for risk control.

Main References:
[1] Wang infrastructure. M & A culture of risk and its identification [J]. Wuhan University of Technology, 2002.6.

[2] Houju Ying, Chen Yanyan. On the cultural construction of socialist harmonious main way [J]. Henan Polytechnic University (Social Science, 2009.1.

[3] Wu Xianying. Corporate culture and its evaluation index system of risk analysis [J]. Enterprise economy, 2007.3.

[4] Wang Ying-luo System Engineering [M]. Beijing: Mechanical Industry Press, 2005.

[5] Du Dong, Pang Qinghua Modern comprehensive evaluation and case selection [M]. Beijing: Tsinghua University Press, 2005.9.

[6] Liu Yanli, Lv Yanzhao. Corporate culture of fuzzy comprehensive evaluation [J]. North trade, 2008.12.

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