A Study On The Motives And Risk Prevention Of Transnational M & A Of Chinese Private Enterprises

The economic globalization is in the rapid development. Capital, technology and commodities has achieved a global liquidity. Economic integration, trade globalization and international investment move forward at a rapid pace, which deepens the interdependence of economic integration between countries. In this trend, the rapid development of foreign direct investment, cross-border mergers and acquisitions gradually become the main way to replace greenfield foreign direct investment. Currently, the total amount of private enterprises has accounted for more than half of China’s total economy, as the driving force of China’s economic development, private enterprises have been a major trend in the future. The aim of the article is how the Chinese private enterprises to successfully carry out cross-border mergers and acquisitions in the current situation.Based on the cross-border M&As theory, this artical analyse the motivation and the cu rrent situiation of the cross-border M&As among Chinese private enterprises. In order to so lve the problems found through the analysis of comparision of Chinese private enterprises cross-border M&As, this artical use both theory and empirical analysis. Nowadays, Chine se private enterprises have a incomprehensive participation and understanding of cross-bor der M&As and have a lack of choice in the international straegic issues. This artical believ es that,aiming to solve these problems above,Chinese private enterprises should develop a strategic cross-border M&As;use diversified payment methods;emphasis on post-merger in tegration issues; pay more attention on risk control; enchance davantages and make up for deficiencies in mergers at the same time.