A Research On The Theory And Methodology Of The Cross-border Mergers & Acquisitions

The economic globalization and new technology & industry revolution are the main motives in our modem society. Cross-border Mergers and Acquisitions (CBM&As) have being play a more and more important role in FDI. Meanwhile, China's economic construction is under the strategy adjustment, the state-owned economy is reforming into the key stage. CBM&As in China and oversea CBM&As by China's business enterprises are becoming more and more prevalent. CBM&As have already become the important issue to the international community which must severally face and make a deep research on it.This dissertation along with a logic line of concept, theories, decision, operation, risk, empirical study, makes use of the economics, management, financial engineering, option theories, games theories and methodologies, analyzes the basic issues such as concept, realistic meanings and confines with theories of CBM&As, constructs a driving wheel model, explores the main management activity as decision, operation and risk control, and finally makes cases study from the mother country and host country.Chapter 1 and charter 2 define the concepts of Mergers and Acquisitions, Cross-border Mergers and Acquisitions, reveal the relativity between them, analyze the basic issues such as realistic meanings, history and development about CBM&As.Chapter 3 in terms of the integration methodologies explores a driving wheel model based on the previous theories of FDI and M&As and reveal that the CBM&As of TNCs are driven both by the FDI driving wheel and M&A driving wheel. The FDI driving wheel explains why a TNC would invest directly cross the border, the motives of FDI. The M&As driving wheel analyzes why the TNC choose the mode of M&A, the motives of M&As.Charter 4 makes a research on the CBM&As decision. The author analyzes the FDI location decision with the method of AHP and the objection and timing decision with the real options method.Chapter 5 studies some main operation management, such as valuation, financing-and integration. A valuation system is established. At the same time, the author makes a deep research on the integration and reveals its inherent management principle.Chapter 6 makes a research on the risks and its control, brings up the risk chain and analyzes the relativity, studies the real options method of the risk control and prevention.Chapter 7 is an empirical study. The author analyzes the current situations of CBM&As in China and Chinese TNCs' CBM&As by two different cases, some suggestions are put forward.