Research On The Risk Management Of DH Company Power M&A In Brazil

At present,the domestic power development has entered a new normal state of incremental slowdown;overseas investment is the inevitable means of the development of domestic power enterprises.Throughout the overseas electricity market,Latin American market in recent years is facing a major opportunity to expand the existing overseas investment platform.Brazil is the largest electricity market in Latin America,with strong growth in demand for electricity.Brazil's current shortage of electricity supply,high spot prices,so that the Government has a strong desire to improve the proportion of alternative energy-especially wind power,in order to reduce dependence on large hydropower,thermal power generation market.Into the Brazilian electricity market can achieve economies of scale to reduce costs,expand market share to enhance the overall efficiency of enterprises,the occupation of Latin America strategic place.In this paper,it is of great theoretical and practical significance to analyze the investment risk management model of Brazilian market power project with the successful implementation of the case of the State-owned Electric Power Company of Brazil.At the theoretical level,through the development of value analysis and due diligence in investment projects and the development of the main risks of due diligence investigation,it is possible to pay attention to the problems that may occur during the post-transaction integration as soon as possible.Practical level,the Brazilian market power investment risk management model framework,process and due diligence to make some groundbreaking research for the future development of the national power grid to provide a strong reference.In view of this,based on the theory of Cross-Border Mergers and Acquisitions risk management of the company,this thesis uses literature study method and case-study met hods,explores the merger and acquisition risk factors of DH company,and proposes the corresponding risk control countermeasure,and finally build DH company transnationa 1 merger and acquisition risk control system.The research points out that the motivation of the company's risk management lies in the asymmetry of the international market information,the obstruction of the political factors to the state capital flow,the strong challenge of the international competitors,the cultural differences of the host country.To identify the risk factors in the comprehensive risk management of the case company,to establish and improve the overseas investment risk management organization system;clear overseas M&A risk control process;key link risk management strategy;active use of political means and diplomatic resources escort;improve cross-Management system;clear financial due diligence matters and other recommendations.