Research On Financial Risks Of Chinese Enterprises Overseas M&A

With the development of economic globalization and information technology, the globaleconomy is increasingly becoming a integrative mechanism. The2008financial crisis madethe world economy a big reshuffle, thus allowing many Chinese enterprises making use ofthis opportunity to implement the strategy of “going out”. Now many Chinese enterpriseshope to improve the core competitiveness of their enterprises through the mergers andacquisitions way. However, this way is not plain.Overseas M&A is the largest and highest cost in all the M&A.Financial risk is the firstone we should face with. This problem relates to pricing, financing, payment, integration andsubsequent management of each link. once a part goes wrong, it may cause a fatal blow tothe whole enterprise operation. At present, domestic papers manly through one case analysisof this issue. There are little comparative studies between the cases. Some scholars only fromone aspect to deal with the problem and countermeasure, they haven’t shown the overallframe.This paper adopts literature research and special research to carry on the analysis ofthe subject. Through relevant information to construct the overall framework of the presentsituation of Chinese enterprises overseas M&A. Combined with the real cases, this paperanalysis of the financial risks, put forward to dissolve the risk plan and think about how tomake healthy and benign development of Chinese enterprises overseas investment.This article’s innovation lies in: from concept to specific parts, every details are carriedon. It reveals that what problem financial risks the enterprises faced with, why and how tocarry out overseas M&A. Combined with recent years’ typical stories and concrete practice,from the strategic risk,environmental risk, assessment risk,financing risk,payment risk andintegration risk, we will have a comprehensive and detailed investigation understanding onthis question. In specific cases, we can give our enterprises in overseas M&A someconstruction suggestions and countermeasures. This thesis includes sixth parts: the first partis introduction, mainly describes the research background and significance of this paper,introduces the research framework and reviews the related articles; the second part studies thepresent situation of Chinese enterprises overseas M&A, analyzes the reason of Chineseenterprises M&A and concludes the main types of mergers and acquisitions; the third part discusses the Chinese enterprises in overseas M&A when considering the main financialproblems; the fourth part analysis the problem through the literature research method, talksabout it from the case of Chinese enterprises overseas M&A in recent years. the fifth part putsforward the solutions of overseas M&A and measures; the sixth part indicates the researchconclusions and main ideas of this thesis, looking forward to be further research andproblems on this study.