Discussion On The Financial Risk Of Enterprise 's Cross - Border M & A

Since the 1990 s, the world’s fifth wave of mergers and acquisitions, and our government, "Going out" strategy, as well as China’s accession to the WTO brought about opportunities, cross-border mergers and acquisitions in the global arena has stirred up a strong Chinese style. Companies in order to occupy a place in the international market,priority access to the most advanced technology and scarce resources, the rapid accumulation of capital, accelerating the development of enterprises, to take cross-border mergers and acquisitions in this ideal way. However, cross-border mergers and acquisitions in which both sides in different regions faced with policy limits of at least two countries,reflecting the political risk, legal risk, but because of the different countries market economy, bringing economic risk, even after completion of the acquisition of operational phase, due to the different business philosophy, culture, regional differences, resulting in a culture of risk. At the same time due to the complexity of cross-border M & A process,influenced by many factors of uncertainty, the risk has cropped up, however, all risks will eventually be reflected in the financial, that is financial risk. Based on the previous cross-border M & A case studies, financial risk is a key factor affecting the success of cross-border mergers and acquisitions, and therefore, how to effectively avoid cross-border mergers and acquisitions, reduce, control financial risk, all enterprises become the key issue that must be addressed.This will be a combination of theory and case manner, directly reflect the financial risks faced by cross-border mergers and acquisitions. This paper introduces the concept,definition of cross-border mergers and acquisitions of financial risk, motivation to implement cross-border mergers and acquisitions, features and future trends, and analyzes the status quo of cross-border mergers and acquisitions and financial risks faced, according to this paper, the process of cross-border mergers and acquisitions, cross-border mergers and acquisitions analysis the risks faced by different stages, divided into three phases:preparation phase of transnational mergers and acquisitions, transaction implementation stage, late integration phase. This will be followed by M & A Group B American companies, for example, at different stages of the financial risk to do specific research,including strategic decision risk, the target company valuation risk, interest rate risk and exchange rate risk, financing risk, payment risk and financial integration risks, while financial risk control measures taken by the Group a were analyzed. In this last, we putforward reasonable suggestions to help cross-border mergers and acquisitions businesses avoid or reduce the impact of financial risk and improve the success rate of cross-border mergers and acquisitions.