The Research Of Guarding Against Risk Of Foreign Capital M&A Chinese Enterprises

With the growth of the world economy and the intensification of economic globalization since 1990, cross-border M&A has emerged as the main approach of Foreign Direct Investment (FDI). The first case of foreign mergers and acquisitions has occurred since 1990 in China, Foreign M & A is covering all fields of national economy, In some areas, foreign investment is becoming a monopoly, foreign mergers and acquisitions is becoming the main form of foreign investment. Foreign capital's M&A brings both challenges and opportunities to Chinese enterprises. M&A bring foreign capital, advanced technology, management experience etc., At the same time, because the nature of Pursuit of profit of foreign capital, M&A bring a lot of foreign risk. China's enterprises should not only reasonably use the positive effects of foreign capital, but we have to guard against the risk of foreign mergers and acquisitions.This article first discusses the motive of foreign Mergers and Acquisitions, the way of foreign Mergers and Acquisitions, the trend of foreign Mergers and Acquisitions, and then based on the M & A theory, risk theory, control theory, recognition the risk of foreign according to different criteria. The risks are divided into the loss of State-owned assets in foreign Mergers and Acquisitions, loss of control, loss of market, national brand disappear, financial risk, the risk of the right to speak in the world economic stage, the risk of legal and anti-monopoly reviewed, the risk of redundancy by the expressions. The risks are divided into the risk of whether or not to introduce foreign Mergers and Acquisitions,the risk of the choice of the Foreign-funded enterprises,the risk of M & A negotiation phase, the risk of integration phase in accordance with the generation phase of the risk. Finded the factors of impacting of foreign mergers and acquisitions risk, used the way of the investment of experts, CIM model, Quantified the risk of foreign mergers and acquisitions. On the basis of risk analysis, put forward countermeasures and suggestions for each risk factors, combined with a number of foreign M & A cases, Provide a basis for Chinese enterprises and related department to formulate foreign M & A policy.