The Study Of Chinese Food Enterprises Overseas M&A Financial Risk

After the2008financial crisis, many well-known foreign food companies have plunged into financial difficulties, which gives our food enterprises to go provided a rare opportunity. Current Chinese food companies are stepping up their global distribution to achieve strategic goals through overseas M&A. In Chinese food enterprises overseas M&A cases have occurred, there are successes and failures. Overall, the current Chinese food enterprises overseas M&A’s risk and failure rate was high, and effectively guard against financial risks is a key factor in the success of its acquisition. Although there are many financial risks related to M&A of existing research, set Chinese food companies as object to study overseas M&A of financial risk has not been found. I hope that through this study will help China to improve food enterprises overseas M&A of financial risk prevention capability, develop scientific and rational diverse overseas acquisitions of financial risk prevention measures, optimization of the effect of food enterprises overseas M&A to achieve acquisition targets.In this paper, to Chinese food enterprises overseas M&A as the study object, as literature research and case analysis of research methods.Current situation at this stage the Chinese food enterprises Overseas M&A motivation and character, a careful analysis of a variety of financial risks Chinese food enterprises in overseas M&A process encountered, Including the target company valuation risk, financing risk, payment risk, currency risk and interest rate risk and the risk of post-merger integration, etc., and focus on the acquisition of key financial risks involved in-depth analysis and information on the special risks of Chinese food enterprises. Then combined the classic case Shuanghui international acquisitions Smithfield, on the basis of financial risk on the qualitative and quantitative analysis of Shuanghui international measures to prevent financial risks evaluated.Through research, we draw the following conclusions:1. In order to effectively guard against financial risks overseas mergers and acquisitions, Chinese food enterprises should establish a system of risk prevention system.2. The target firm size is too large lead Chinese food enterprises overseas mergers and acquisitions of financial risk is high.3. food safety issues has become a major force in my food enterprises overseas mergers and acquisitions. Shuanghui International effective prevention of certain risks such as M&A decision risk, exchange rate risk, but the risk for others, such as financing risk, interest rate risk is to prevent ineffective lead to overall higher Shuanghui international financial risk.proposed preventive measures for Chinese food enterprises to cope with all kinds of financial risks in overseas M&A process. This is conducive to China’s food business through the development of scientific and rational overseas M&A of financial risk prevention measures to increase the success rate of its overseas acquisitions to achieve corporate strategic goals.Meanwhile, the paper selects new cases, the combination of theory and case, better to validate the findings of science and rationality thesis. Therefore, the research point of view of this paper is novel, research also has some practical value.