Able Technology Limited

The thesis, which is composed by two parts: the case and case analysis, is a study on the risk of shell company acquisition.In the first part, to show all kinds of potential risks during the acquisition process, the author reappears the situation and presents the main problems through six plots in time order, such as drainage of important personnel, subsidiary corporations be charged to clearing, latent liabilities and legal issues, etc..In the case analysis, the author firstly introduces the causes of Able Technology Limited's acquisition of Chentai Group Ltd. Secondly, He applies theories to analyzing the causes and effects. These theories include Unsymmetrical Information, Commission-Agency, Tobin-ratio, Leverage Acquisition Theory, Shell Pricing Model, Corporate Culture, Culture Conflict and so on. Finally, the author analyzes the influence of these risks in different stages of acquisition, and puts forward suggestions on risk prevention.