Overseas M&A Risk Management Practices Based On Obtaining Core Technologie

With the rapid development ofeconomic globalization, enterprises overseas mergers and acquisitions (M&A) activity isincreasingly becoming an important way to expand their markets and access to resources or competitiveness, In China,state-owned enterprises take a large proportion in overseas M&A activities and dominated overseas acquisitions subject. The financial crisis in2008brought Chinese enterprises overseas mergers and acquisitions a certain opportunities. But in the process of overseas mergers and acquisitions there are more risks and challenges. Risk management in M&A activity has become the focus of regulatory authorities and the business itself concerns. How to recognize risks in overseas M&A activity, how to assess the impact of risks, what management measures taken can reasonably avoid and reduce risksare becoming more and more critical in state-owned enterprises’M&A activities.In this paper, started with the basic concept of mergers and acquisitions, the core competence theories, risk management and internal controls, the author did a systematic analysis about the status of related research. Through the analysis of different mergers and acquisitions motivations, the existing riskmanagement and internal control theories, the paper focused on defining M&A process, analyzing risks identification, assessment, prevention and management in each stage of M&A activities. Against the risk of central enterprises in all aspects of M&A transactions that may be encountered, proposed corporate merger and acquisition activity should draw on the internal control system with the idea of the various aspects of the process and procedures for risk management to ensure the smooth progress of M&A transactions, protection of mergers and acquisitions realize value.Through case study approach about CSR Times Electric steam overseas acquisitions empirical analysis, this paper integrated the process steps andinternal control systems foroverseas M&A activity with the purpose of acquiring core competencies.Through risk assessment to determine the risk list effective risk management measures, and ultimately the formation of the state-owned enterprises overseas M&A risk management framework which provides interoperability reference model and a strong management tool for otherstate-owned enterprises in the future.