Analysis And Prevention In The Transnational M&A Of Chinese Enterprise

In recent years, a tide of transnational M&A of Chinese enterprise is surging all around China. Through transnational M&A, Chinese enterprise can quickly enter the international market, and participate in the resource assignment of the global market, and thus get larger economic and trade benefit. But for there are lots of risks during the transnational M&A, and parts of our enterprise lack experience of international investment, the ratio of success is poor. After the analysis of risk and motive of transnational M&A of Chinese enterprise, this paper put forward a fuzzy overall evaluation method of risks in transnational M&A of Chinese enterprise, then find measures to against the main risks and give some suggestion for the Chinese government.This paper has five parts.The first part is on the countermeasures taken by the enterprise and the law system for supervising and managing established by the government both in the west countries and in China.The second part analyses the motive of transnational M&A, then find the reasons why Chinese enterprise choose transnational M&A. The main reasons are based on the thinking of strategy and financing. Besides, changes in macro environment and law both abroad and inland are other factors.The third part uses two different methods to classify the risks that may be in the transnational M&A of our enterprise. Then it conducts a fuzzy overall evaluation measure to analyze the risks and find out the main risks exist in the transnational M&A of Chinese enterprise.The fourth part analyzes the countermeasures of the main risks such as law risk, financing risk, price drawing risk and cultural integration risk. And also some policy advices for our government are given.The fifth part summarizes the main achievements this paper has gotten.