Financial Risk Research Of Brightdairy's Cross-border Mergers And Acquisitions Of New Zealand Synlait Milk

With the development of the globalizition in recent years,the economic relations between countries are increasingly close through various methods,the cross-border mergers and acquisitions activities of Chinese enterprises are presenting an rapid upward trend.More and more Chinese enterprises are taking M&A as the lever to improve capability from the local enterprises to the global enterprises.Through cross-border M&A,Chinese enterprises can expand market share,learn advanced technology and management level,thereby enhance international competitiveness.However,Chinese enterprises have poor experience in cross-border M&A,often ignore various financial risks that may rises before and after M&A,which make the cross-border M&A effect difficult to achieve the desired goal.Therefore,the paper analyses the overseas M&A activities from the perspective of financial risk.The paper selects the case of Brightdairy's cross-border M&A of New Zealand Synlait Milk through literature research method and case research method.Based on Strategic Development theory,Efficiency theory,Resource Allocation Effect theory and Risk-based financial management theory,the paper analyses the M&A process and causes and the financial risk of Brightdairy's cross-border M&A of New Zealand Synlait Milk,including the financial risk of the planning stage,the financial risk of the implementation stage and the financial risk of the integration stage,and then evaluate the financial risk by the means of Z-Score model.On the basis of above discussion,the paper elaborates the precautions and the implementation effect of Brightdairy cross-border M&A of New Zealand Synlait Milk.The conclusion is:firstly,the M&A activity provides valuable experience for the further internationalization of Brightdairy;secondly,from the strategic development of the enterprise,the acquisition is successful,and achieves the desired target;From the financial indicators wholelly,the acquisitions is also successful.The results of this paper can provide references and experiences for implementing the cross-border M&A activity smoothly and improving the international competitiveness of Chinese dairy enterprises,and enhance the ability to identify and resist financial risks of dairy enterprises.