The Cost Optimization Of Chinese Companies’ Horizontal Cross-border M&As

With the implementation of "go global" strategy and accession to the WTO, the occurrence frequency of horizontal cross-border M&As for Chinese companies is higher and higher. However, under the influence of markets at home and abroad, few successes, this makes Chinese companies suffer huge lose. The main reason for the fail is that wrong strategy for M&A makes high cost, what makes the companies can not succeed. So, to study the cost structure of horizontal cross-border M&As of Chinese companies, and identify ways to reduce costs is the necessary way to improve the success rate of horizontal cross-border M&As of Chinese companies and promte the rapid development of Chinese companies.This paper focuses on analyzing and combing the status of research on cross-border M&As at home and abroad. The horizontal cross-border M&As cost structure of Chinese companies is divided, mainly into decision cost, transaction cost, integration cost, opportunity cost and system cost from vertical perspective (the process of M&A) and horizontal angles (environmental factors) Based on this structure and set off from the entire merger process, the cost optimization method of horizontal cross-border M&As of Chinese companies, dominated by value chain analysis and assisted by other accounting methods,has built up the value chain model of horizontal cross-border M&As. According to this model, we can get the internal chain model of each stage of the horizontal cross-border M&As of Chinese companies, then to arise cost optimization methods for each part.This paper makes it clear that to reduce the cost horizontal cross-border M&As for Chinese companies, a appropriate and effective method is necessary. Only low M&A cost can be the solution of high cost of horizontal cross-border M&As for Chinese companies and thereby increase the success rate, thus to Chinese companies, this paper is of realistic and guiding significance.