| In a market economy,mergers and acquisitions is a rapid expansion behavior,which is an important means of business expansion capital,as well as an important strategy for enterprise development for an effective way to achieve the optimal allocation of corporate resources.Since 2009,the world economic crisis spread to all world,especially in Europe and North America business has been hit hard,many industries difficult out of the woods.Chinese enterprises to seize the opportunity to invest in low-cost overseas,joined the army of overseas mergers and acquisitions,and those mergers and acquisitions expected by advanced technology or technology and efficient management of the enterprise to achieve optimal allocation of resources,access to advanced foreign technology,to avoid trade barriers and improve the international brand influence and other purposes.In the case of Chinese enterprises overseas mergers and acquisitions in risk of finance by combining Zoomlion acquired the Italian company CIFA,we explored the acquisition process broken down into three phases,and this paper summarized the financial risk characteristics of each stage and its cross-border mergers and acquisitions in the financial risk-depth analysis,specific risk prevention and control measures.Drawing on its experience,and other enterprises transnational companies generate inspiration,to enterprises in overseas mergers and acquisitions process to better identify financial risks,proper risk prevention and control,in order to improve the chances of success of mergers and acquisitions.In this paper,through the case of Zoomlion buying an Italian company to explore the financial risk of overseas Chinese enterprises mergers and acquisitions.First it introduces the research background,enterprise cross-border M&A acquisition development process and present situation of domestic and foreign enterprises are briefly described,and the related literature at home and abroad are reviewed.Transnational merger and acquisition of the enterprise and its financial risk theory are summarized,in the paper,define the concept of cross-border M&A,and introduces its connotation,basic content,at the same time the introduces of the concept of risk control and related basic theory such as the synergy theory,underpricing of valuation theory,risk basis of financial management theory,market power theory.This article dismantles M&A process into three stages-preparing stage,executing stage and integration phase,puts forward in the preparing stage exists the investment decision-making risk and valuation risk,in the execution phase exists financing risk,payment risk and interest rate risk,in the final stage of integration exists financial,human resources,business strategy and cultural integration risk,makes a conclusion of financial risk characteristics of each stage and in analysis of the financial risks in the transnational merger and acquisition,specific risk prevention and control measures are put forward,and absorbs the experience: in the preparing stage,a merger may make the reasonable M&A strategy through the power of PE and intermediaries due diligence to reduce the financial risk of the preparatory phase;In execution phase,enterprises can choose its own funds and loans for financing,payment of cash and seller’s of debt;In the last stage of the integration pay attention of financial,human resources,business strategy and cultural risk of integration,in order to reduce the loss of cross-border M&A. |
