Study Of Cross-border Mergers And Acquisitions Strategy

A. Purpose and Significance of Research 21 century, The economic globalization develops fast, transnationalcorporations (TNCs) gradually are active, many countries looseincreasingly controls to the economy, the market economy system furtherexpands, the liberalism progress of world investment turns further anddeeply. In order to enhance the market position, decline low cost, liftefficiency and use excellently the resources, cross-border M&A hasbecome the symbol of competition. It brings about the fifth cross-borderM&A tide within the scope of global, cross-border M&A also has alreadybecome main way of FDI. After 90's in 20th century, cross-border M&Ahas become the main operation method of foreign directly invest. The cross-border M&A rises because the economicinternationalization and the adjustment of the policies and regulations.Furthermore, in view of the development strategy, consideration of theR&D, taxes, the exchange rate policy, the trade barriers and so on, thecompanies are keen on the cross-border M&A. At present, more and moreTNCs choose the cross-border M&A as the main strategy to enter theworld market and enlarge theirs competitive advantage. The cross-border M&A, not only changes the traditionalinternational economic structure, but also causes innovation anddevelopment of business enterprise management from theories, strategyto method, which is paid the fulfillment quickly. The research ofcross-border M&A becomes the focus of many economists and thebusiness enterprise. The cross-border M&A of chinese business enterprise belongs to theearly stage still. Facing the new situation under of cross-border M&A tide,the preparation on theory is not ready, so the research of cross-borderM&A, for the our country business enterprise to establish strategy andcounter plans, has the important meaning.B. Frame and main contents of research The phenomenon of the cross-border M&A is a combination of FDIand M&A, it is not long since it becomes important economyphenomenon of the world economy .The cross-border M&A regardscompany as object, the research on the cross-border M&A shouldincluded the motives of cross-border M&A, choice and valuation of thetarget company, the risk and the effect of The cross-border M&A. The article includes six chapters. Its frame construction is asfollows: Chapter one of this article studies the definition, the relation ofcross-border M&A and domestic M&A, summarizes the process ofdevelopment and characteristics of the cross-border M&A. Thecross-border M&A has many different characteristics and effects withdomestic M&A. Chapter two introduces the latest theories of the motives of FDI. Itevaluates advantages and limitation of these theories. Then the 2ndsection makes a deep research on the motives of cross-border M&A. Chapter three, following, studies the choice and valuation of targetcompany. The choice and valuation of the target company is importantpart of cross-border M&A. Immediately after, Chapter four of the article analyzes the risk ofcross-border M&A, and how to reduce the risk. Having analyzed thefeatures and risks of the cross-border M&A, this chapter points out thatwe should enhance its management and avoid the possible risks causedby it. Chapter five makes a research about the effect of the cross-borderM&A, including its positive effect, negative effect and short-term andlong-term effect to the employment. The cross-border M&A brings aboutimportant influence on international economic and other partiesconcerned. Then the 2nd section of the chapter discusses the problem ofcross-border M&A and anti-monopolization. Chapter six discusses the limitative factors that the Chinese businessenterprise carries out cross-border M&A; and Analyzes the strategicpossibility of the Chinese business enterprise carries out cross-borderM&A to join the international competition. At last the 3rd section putsforwards some suggestion about chinese enterprise's cross-border M&A.