The Financial Risks Of Private Enterprises' Transnational Merger And Acquisition And Countermeasures

With the spring breeze of reform constantly blowing to various industries,the domestic economy began to develop steadily.Under the government's various preferential policies,many domestic private enterprises began to go out of the country,expand their market to foreign.After having been divided into pilot enterprises,different enterprises in various industries are scrambling to join into the wave of cross-border mergers and acquisitions.But in this wave,not only have the temptation of huge interest resources,but also appear a variety of risks.Due to the slow pace of cross-border mergers and acquisitions of domestic enterprises,research in this area is not mature,such as two enterprise strategic goals are not unified,the financial risk of M&A,post merger integration risk and so on.These will influence the success of cross-border mergers and acquisitions.In order to greatly improve the success rate of M&A,we should estimate and control all kinds of risks in the process of M&A.This research take the method of combining theory and practice,use the results have been studied in the country and aboard as theoretical foundation,analysis a huge M&A transaction--mergers and acquisitions between Shuanghui and Smithfield.Analysis a series of financial risk problems appeared in the process of M&A,and the solutions Shuanghui had taken,then obtain a series of constructive solution to control financial risks in the process of merger.The purpose of this research is mainly to make domestic private enterprise notice the risks in the future cross-border M&A process,puts forward some effective and feasible solutions,establish a set of perfect risk prediction and control system And introduce professional intermediaries to some enterprises do not have the ability to estimate risks in cross-border mergers and acquisitions.In the end,remind domestic private enterprises to analysis their ability seriously,ask them not follow the wave of transnational merger and acquisition(M&A)blindly.