Management On The Cross-border M & A Risk Of Chinese Enterprises

Under the background of internationalization competition, the enterprises transnational merger and acquisition is transforming gradually into the most common model of foreign direct investments. As the development of Chinese economy, the implementations of Chinese Enterprises transnational merger and acquisition's are also getting more and more important. Chinese Enterprises has encountered various difficulties and challenges. The success ratio of Chinese Enterprise transnational merger and acquisition is low, less than 40%.This article studies on the type of enterprises transnational merger and acquisition risk and the actuation factor. Based on this it introduces the five characteristic of Chinese enterprises transnational merger and acquisition. After that the paper introduces the three risks that Chinese Enterprises transnational merger and acquisition faced, they are environment risk, financial risk, merger and acquisition the conformity risk. The paper builds hierarchy of risk factors of cross-border mergers and acquisitions of Chinese enterprises: environmental risks including political risk, macroeconomic risk, social risk; financial risks including price risk, financial risk, currency risk, payment risk; post-merger integration risks including business cultural integration risk, the risk of human resource integration, the risk of production and operational integration, the risk of integrated management structure. Then the paper analysis Chinese companies M & A quantitative risk with the fuzzy comprehensive evaluation approach. Then the paper uses an analytic hierarchy process it gives the right weight on the index system and evaluates comprehensive evaluation of the overall Chinese companies M & A risk based on fuzzy mathematics. Finally, some advices are given on identification of environmental risk, financial risk, and acquisition integration risk.