Financial Risk Assessment Of Cross Border Mergerbased On Fuzzy Comprehensive Evaluation Method

Under the tide of globalization,enterprises want to enhance the competitiveness quickly,mergers and acquisitions are the first choice for most enterprises.In 2007,the global financial crisis began to take shape,in the international economic environment,the general down turn,many foreign companies are under the state.Therefore,the enthusiasm of Chinese enterprises continues mergers overseas to heat up.In 2008,the outbreak of the global financial crisis,the number of mergers and acquisitions of Chinese enterprises is increasing.Successful mergers and acquisitions will enhance the competitiveness of enterprises effectively,and the failure of mergers and acquisitions will affect the production seriously and development,and even lead to bankruptcy.So in the process of cross-border mergers and acquisitions,the attention and the control of risk is very important.How to evaluate the risk of M & A,especially the financial risk,has become a problem which is concerned by the academic and practical circles.This paper takes cross-border mergers and acquisitions in the financial risk evaluation as the starting point,according to the process of cross-border mergers,it will segmentate financial risk.It measures the enterprise financial risk of cross-border mergers and acquisitions based on fuzzy comprehensive evaluation method,the case of CNOOC mergers Nexen,for example,analyzing the major financial risks involved forms and assessment methods.This paper firstly expounds the background and significance of the research on the financial risk assessment of cross-border mergers and acquisitions,and points out that cross-border mergers and acquisitions are the only way for Chinese enterprises to become bigger and stronger.How to avoid the financial risk cross border mergers and acquisitions,in other words,how to objectively assess the financial risk of cross-border mergers and acquisitions is a very important issue.In order to solve the problem in-depth research and analysis.Firstly,this paper reviews the literature on cross-border mergers and acquisitions of financial risk connotation,classification and performance,assessment methods,fuzzy comprehensive evaluation method.four aspects of,and to collate,summarize and review of the literature.Then,this paper introduces the theoretical knowledge about the connotation of cross-border mergers and acquisitions,cross-border M & a financial risk connotation and manifestation,risk assessment methods and fuzzy comprehensive evaluation method,the concept,laying a solidfoundation for the back of the case analysis.Then,it introduces the CNOOC and nexen survey as well as the background of M & A,according to CNOOC's acquisition of Nexen in the process of financial risk,mainly divided into in-depth analysis of pricing risk,financing risk,debt risk,financial integration risk.Then,the evaluation results were collected and processed,and the evaluation results were quantified by using fuzzy comprehensive evaluation method to evaluate the financial risk of M & a process as accurately as possible.Finally,it is the last part of this paper.Mainly on the use of fuzzy comprehensive evaluation method to quantify the financial risks of cross-border mergers and acquisitions in the process of some of the conclusions and future use of the fuzzy comprehensive evaluation of some of the enlightenment.This paper has the following characteristics and innovations: first,there are a lot of literatures about the financial risk of cross border mergers and acquisitions,but the literature on quantitative evaluation of financial risk is relatively small.In this paper,fuzzy comprehensive evaluation method is used to establish the model to assess the size of financial risk in cross-border M & A by collecting the specific opinions of experts and scholars.Second,the use of fuzzy comprehensive evaluation method is the most important part to establish the weight of indicators,for this ring in the past,the practice of the literature is through the use of analytic hierarchy process to achieve.However,due to the complexity of the analytic hierarchy process,it is not easy to popularize and use.Therefore,this paper focuses on the Excel analytic hierarchy process can greatly simplify the use of the process,making the fuzzy comprehensive evaluation method to facilitate the promotion.Third,the weight data obtained in the process of establish the weight to through consistency check to determine whether can eventually use,past use of analytic hierarchy process(AHP)inspection means rework,computation is very huge and very troublesome.EXCEL analytic hierarchy process can effectively solve the problem of consistency checking and rework,and simplify the calculation process greatly.