A Study On Chinese Private Enterprises' Cross-border M&As

In the recent years, cross-border mergers and acquisitions has become an important means for transnational enterprises to realize their global strategy. As the developing and transitional economy, the cross-border mergers and acquisitions of Chinese enterprises have already started. With the further implementation of "Going-out" strategy, the cross-border mergers and acquisitions of enterprises in China will become more and more. And the cross-border mergers and acquisitions of Chinese private enterprises have also shown some flourish, but our private enterprises are still on the stage of beginning on the whole, bear strong imprints of probing, so it is necessary for us to review and analyze the cross-border mergers and acquisitions of Chinese enterprises and hopes it can be a help to the domestic private enterprises who are practicing cross-border mergers and acquisitions.The cross-border mergers and acquisitions of Chinese private enterprises appear some low-level characteristics which are different from the leading features of global mergers and acquisitions. The scale of the cross-border mergers and acquisitions of Chinese private enterprises is not very big, the target enterprises don't play very well when the cross-border mergers and acquisitions happen, the mode of Chinese private enterprises cross-border mergers and acquisitions is always horizontal cross-border mergers and acquisitions. The motivations of Chinese private enterprises cross-border mergers and acquisitions include searching for core technology, strengthening market position, gaining access to foreign markets and so on.The strategy of the cross-border mergers and acquisitions of Chinese enterprises is to choose the enterprises which didn't play very well in developed countries, and the mode of financing is various. This text thinks that Chinese private enterprises should make location choice on the basis of its industry ; pay attention to due diligence before acquisition and try more various mode of financing. Chinese private enterprises' cross-border mergers and acquisitions can not do without the support of the Government .The governments should view it from the angle of strategy and support the cross-border mergers and acquisitions of Chinese private enterprises by law and policy.