Explorations Onto The Risk Control Of Bank Overseas Mergers And Acquisitions

With the development of China's market economy,the scale of Chinese enterprises,Chinese enterprises to the world's demand is also increasingly urgent,active in overseas mergers and acquisitions market.The tide of overseas mergers and acquisitions has brought new development direction for China's banks,leading the way for the internationalization of Chinese banks.China's banks want to occupy a place in the international market,to promote their own business to the international market,overseas mergers and acquisitions is the only way.Throughout recent years China's Bank of overseas mergers and acquisitions,not difficult to find that the Bank of China's overseas mergers and acquisitions activities have been some success,and become an integral part of China's banking internationalization strategy.Through overseas mergers and acquisitions,we can obtain valuable international experience from the management mode,risk control system,product innovation mechanism,international level and so on.Gradually shorten the gap with the international top banks,improve the overall international competitiveness of China's banks.In the period of the subprime crisis in the United States,Part of the international financial institutions has a liquidity dilemma,while in China most of the bank's asset size and financial strength of listed on the adoption of the reform obtained greatly enhanced and enriched,which for our bank to go abroad to provide favorable objective conditions.However,in the increasingly competitive environment,overseas mergers and acquisitions full of risk,but also can be said to be a high risk of economic activity.With the rapid development of economic globalization,China's banks in the "going out" on the road facing the huge challenge,which brings the relevant risk factors,especially risk growing.This paper first describes the relevant theoretical overview of overseas M & a risk.In bank overseas mergers and acquisitions,the risk is mainly reflected in the pricing,valuation,strategy,integration,exchange rate,payment methods and other aspects of the bank.In the process of merger and acquisition,the strategic planning of China's banks overseas M & a reasonable,but there are many risks in M & a path,due diligence and payment means,and so on.Therefore,it is still a key problem for the banks in our country to analyze the external and internal causes of the financial situation of the target enterprise,design the structure and management.This paper chooses the process of merger and acquisition as the breakthrough point,divided the m & a risks into three stages and respectively discussed the form of expression of these three stages.Then through the case of the failure of the Minsheng Bank overseas mergers and acquisitions,analysis the diversity and complexity of risk in overseas M & a.Found that there are three problems in Minsheng Bank's acquisition of the preparatory stage: acquisition decision and development strategy,information asymmetry,estimation of target enterprise value by using the present value of earnings.Two problems in the implementation of M & a stage: cash payments,the exchange rate rose during the merger.Two problems in the Merger and acquisition stage: no financial control and no integration after merger.At the end of this paper,the effect of the risk control of the people's Bank of China during the process of overseas M & a is analyzed and discussed,Its high valuation of the target enterprise,the control of the risk of the assessment;in the choice of payment method is not appropriate,the payment of the risk of control;lack of financial integration and management capabilities,the lack of integrated risk control.Finally,through the analysis of the case,some suggestions are given to the risk of the bank's overseas mergers and Acquisitions: To do a good job in the pre merger strategy preparation,acquisition decision-making should take full consideration of its own development strategy,but also to understand the United States of America's acquisition environment and policy;In assessing the value of the target enterprise to multi contrast,choosing the most appropriate evaluation method,the real option method is a good method;In the choice of payment methods need to have a long-term strategic vision,in the emphasis on saving costs,but also to take into account the risks;Pay attention to the acquisition of financial control,but also pay attention to the financial integration after the merger.