A Study On Cross-Border Merger & Acquisition

With the enlargement and deepening of international production, FDI has been paid more and more attention as the way leads to production internationalization. According to the defference of investment mode, FDI can be classified as green field investment and cross-border Merger & Acquisition. In the early FDI flows, green field investment is the dominating way. But with the development of globalization, cross-border Merger & Acquisition has been one of the most importment ways.This trend is also found in the internationalization of Trans-National Corporations (TNCs) . The internationalization of TNCs leads a way from product export, material import, and technology & license trade to FDI and cross-border Merger & Acquisition. This internationalization process requires as much as tens of years or more, so it can not follow with the current situation. With the development of globalization, the internationalization of local market and the localization of international market have been more and more evident. These make a good condition for the development of cross-border Merger & Acquisition. With the cross-border Merger & Acquisition, TNCs can tap into international market; obtain more resources, new customer and new technology; and win market power within a limited time.In summarizing the FDI theory and Merger & Acquisition theory, along with the analyzing of both western and Chinese companies' Merger & Acquisition history, this dissertation talks over the motivation of cross-border Merger & Acquisition, and, thinks about the high risks of Cross-border Merger & Acquisition, this dissertation also develops a process control concept of cross-border Merger & Acquisition, including decision making, valuation, take over process and so on. This dissertation also dicusses the actual hazards of cross-border Merger & Acquisition, along with the post-merger intergretation and the quit strategy if the Merger & Acquisition is failed. The author hopes that this dissertation can benefit the Chinese enterprises who wish to go internationally with cross-border Merger & Acquisition.