Research On Financial Risk Evaluation Of Overseas M & A Of Private Enterprises Based On Life Cycle Perspective

Since the beginning of the 21 st century,with the continuous improvement of China's economic system reform and the guidance of national policies,the comprehensive strength of private enterprises is growing.After the outbreak of the financial crisis in 2008,China's private enterprises seized the opportunity forming a wave of overseas mergers and acquisitions,and gradually became a new force of overseas mergers and acquisitions.However,the road of privat e enterprises overseas mergers and acquisitions is full of obstacles,facing a series of risks such as market risk,political risk,financial risk,while financial risk is a combination of various risks in value,and the financial risk of private enterpris es in different life cycle is differe nt.Therefore,the purpose of this paper is to evaluate the financial risk of private enterpr is es by analyzing the size of financial risk before and after overseas acquisitions of private enterprises by analyzing private enterprises in what kind of life cycle under the financ i a l risk of m & a will be relatively high.The purpose is to provide countermeasures and suggestions to private enterprises.In this paper,the factorial analysis method and the efficiency coefficient method are used to construct the financial risk evaluation model,and the quantitative changes of the financial risk of private enterprises in different life cycle stages are measured quantitatively.First of al,by reading a large number of journal papers,related works,in order to sum up the previous scholars of the lack of research to find the innova t io n of this study,and elaborate the relevant theory,lay the foundation for the later;Secondly,the author combined the characteristics and the status quo of private M & A of private enterprises in China,summed up the common nature of China's private enterprises and explored their problems,Basing on the enterprise life cycle,the life cycle of private enterprises in China is defined,and the research samples are divided into three periods : growth period,maturity stage and recession period.Thirdly,the overseas M & A events of private listed companies in China from 2001 to 2013 are selected as the samples.The factor analysis method and the coefficient of function method are used to construct an evaluation model which can reflect the factors such as profitability,operation,debt service and development,and evaluate the financial risk of private enterprises before and after the acquisition of different life cycle samples.Finally,the paper puts forward the measures to reduce the financial risk of M & A in private enterprises from the perspectives of government and enterprises in combination with the financial risk of M & A of private enterprises and the financial risk before and after the different life cycle,so as to provide a reference for the overseas M & A of private enterprises to enhance the success rate of mergers and acquisitions and reduce the financial risk.