Research On Risk Of Foreign Capitals' M﹠A

With the acceleration of globalization, many countries further deepen their economic and political ties, capital flows are increasingly diversified. China's sustained and rapid development of economic, which led foreign investors by way of mergers and acquisitions of domestic enterprises to enter and occupy the market, and China, now has increasingly becoming the global M&A's hotspot. However, different institution and mechanism differences, makes the original form of M&A facing multiple problems. Foreign M&A in China is not all plain sailing. From the research show that only 30% to 40% of total M&A cases realize the healthy development after the acquisition. And most of M&A's cases ended in failure.M&A is affected by macro-policy environment, and also constrained by its own terms. Since risk is throughout from the M&A, that how to do risk identification and control is the focus of foreign M&A. This paper is based on analysis of today's M&A by foreign investors on their characteristics, motivations, methods and effects, focus on the crucial factor of risk surrounding the M&A by qualitative and quantitative analysis.In this paper, by multi-perspective and segmented analysis of M&A's risk, foreign acquisitions are summarized by 13 kinds of risk. By using evaluation method of gray for analyzing and evaluating the risk of M&A, this chapter led the risk management reasonable and practical. And in this paper, to a certain extent, focuses on analyzing and explaining of the response and control measures while facing to the risk of legal and policy, target companies have chosen to risk, financial risk, and integration risk. At the end of the paper, this paper that have selected a highly representative case that Carlyle mergers and acquisitions with XCMG, which occurred in recent years, having been combined with practical analysis and further argues.