An Analytical Study On The Motives And Performances Of Chinese Enterprises' Overseas Mergers And Acquisitions

Enterprise merger and acquisition activity has been surviving more than 100 years in the western economic development history,untill now there are a total of six times mergers and acquisitions wave around the world.In the past few decades,many countries has experienced the peak of the merger and acquisition activity and subsequent decline,which the first four times occurs mainly in the United States,the European Union become the world's second largest mergers and acquisitions market because of less affected by the war.After the year of 2000,the fifth wave of mergers and acquisitions happened in the global markets,emerging markets start to participate in it.After the sixth wave of mergers and acquisitions,with China as the core of developing countries gradually become the main force,in our country,many enterprises choose overseas mergers and acquisitions investment to rapidly catch up others.Since the beginning of 1984,the first Chinese overseas mergers and acquisitions,after 30 years of development,Chinese enterprises overseas mergers and acquisitions now show the characteristics as blow: From the point of mergers and acquisitions area,more Chinese enterprises prefer to choose the United States,Australia and other developed countries and regions;From the industry of mergers and acquisitions,in recent years Chinese enterprises overseas mergers and acquisitions focus shift.Before,focus was mainly concentrated in the energy industry,the current has gradually turned to the TMT,food,medical and other industries;From the point of mergers and acquisitions subject,private enterprises replace the state-owned enterprises,then become the main mergers and acquisitions.In 2016,the Chinese enterprises overseas mergers and acquisitions explosive growth,transaction amount reached $221 billion,more than the last four years of Chinese enterprises overseas mergers and acquisitions.Under the background of China's economy into the new normal,more and more enterprises choose to overseas merger and acquisition,but the 2016 overseas enterprise financial risk management report published only one third of Chinese enterprise mergers and acquisitions efficient,weighted cross-border and cross-cultural integration factors,overseas mergers and acquisitions can truly successful below 20%,lower than the international average success rate of mergers and acquisitions.Under this circumstances,it is necessary for us to analyze the motivation of Chinese enterprises overseas mergers and acquisitions.Combined with the concrete situation in our country,first of all,this thesis from four aspects: the strategic motivation,economic management motivation,speculative motivation and policy factors,then sums up 10 different factors with Chinese characteristics: brand and channel seeking,technology seeking,resources seeking;enhance market power,spread risk;cross-border arbitrage,obtain shell resources;the encouragement of our government,the support of mergers and acquisitions,the policy of host country.Then based on different motivation perspective of Chinese enterprises overseas mergers and acquisitions,designing a form of evaluation index which combined with the non-financial indicators.Finally,from several aspects,we make some advices on evaluating enterprise strength reasonably for acquisition targets,hire a professional intermediary,study of the host country law,pay attention to the integration after merger and acquisition.So our enterprises can effectively reduce the risk of overseas merger and acquisition,and improve the success rate of overseas mergers and acquisitions.