The Research On Chinese Enterprises Internal Control Mechanism Of Overseas Mergers And Acquisitions

With the development of Chinese economy, Chinese enterprises have growing demand for energy and high-tech. A number of strong enterprises embark on the road of overseas mergers and acquisitions, attempting leap forward in the field of energy and high-tech. However, due to various reasons, some of the overseas mergers and acquisitions do not achieve the desired results. It raises the discussion by practitioners and theorists:how to identify the risk of mergers and acquisitions, how to control the risk of mergers and acquisitions.On the basis of the research of domestic and foreign scholars on the mergers and acquisitions, the paper argues that mergers and acquisitions activities should be divided into four stages:decision-making, implement, integration and evaluation. Illustrated by the example of China Minmetals Corporation and China Sinosteel Corporation, the paper finds the key factors that lead to the success or failure of the mergers and acquisitions. Due to the combined effect of the political, economic and cultural factors, Overseas mergers and acquisitions have to face more challenges and greater risks than domestic mergers and acquisitions. This paper lists the overseas mergers and acquisitions point of common risk identification and specific performance.Enterprise should make correct choice of the target company on the decision-making phase, and form a complete overseas team. Enterprises should focus on strengthening communication with the host country and the target company on the implement phase. Eliminate consideration of the host country for their own economic security and misunderstandings. Enterprises should try to ensure that the interests of stakeholders can be met on the integration phase. Enterprises should evaluate the internal control on the evaluation phase.