Analysis And Prevention Of Financial Risk Of Transnational Mergers And Acquisitions

Benefit from the stock market boom, industry consolidation and restructuring of state-owned enterprises and other factors, the first half of 2015, Chinese enterprises’ transnational M & A transactions record. For cross-border M & A activity, the biggest challenge is to identify potential risks in the process of mergers and acquisitions, especially financial risk. This paper explored the financial risks that may occur during multinational merger to acquire SFD companies Shuanghui International case studies, hoping to provide a reference for future cross-border mergers and acquisitions in the main and the control of financial risks.This article obtains from the transnational merger and acquisition process, in view of the transnational merger and acquisition of selection of target enterprise, the target enterprise value assessment, m&a financing, offer ways to determine as well as the integration after m&a and so on each link, find out the possible risks, and one of the causes of these risks and control were analyzed. Then, in this article, through the analysis of shuanghui international m&a cases, study the existing financial risk and financial risk control measures. In the process of value evaluation, the main there is information asymmetry, financial statements is not true, assessment methods such as inappropriate risk valuation. Shuanghui international average p/e ratio method, fully consider the market value, to effectively control the risk valuation. In the process of financing, the main risk of financing structure and financing decisions. Shuanghui international use of foreign mature capital market, select leveraged financing way financing, broaden the financing channels, to control the financing risk. In the process of payment, the main risk is liquidity risk, diluted, debt stability problems. Shuanghui international cash, equity and leverage through the use of reasonable, effective control of the risk to pay. In the process of integration, there are a series of integrated risk management, management, culture. Shuanghui by integrating international financial goals, financial management system and to properly maintain the independence of the target enterprise, effectively control the risk of integration.The main contribution of this paper is theoretical and case studies combined, the financial risks faced by the entire M & A stage is instantiated analysis, targeted to make some financial risk control measures, we hope to analyze this case study can help our country companies to take reasonable measures when cross-border mergers and acquisitions to control financial risk, improve the success rate of cross-border M& a business.