The Analysis Of The Failure Causes Of Chinese Private Enterprises In Overseas M&A

On the base of the economy' globalization,the civil economy development situations and the intense competes situations around every fields in the whole country,A Chinese private enterprise shares the intense transformation and upgrade requirements,With the implements of two kinds of strategy the“Walk Out”and“the Belt and Road(B&R)".most Chinese enterprises have devoted themselves to the progress of overseas combination.However,the Chinese enterprises' finishing rate in overseas M&A is between 60%-80%,and the success rate of M&A is between 40%-50%.In order to improve success rate of overseas M&A of private enterprises,the paper is based on the theories which can effect the success of M&A,including overseas pricing theory,experience theory,talent theory,system theory,the brain drain theory,and then study the causes of failure of private enterprises overseas M&A.It is based on the fact that the overseas combination transactions of private enterprises take place in different period,and in different industry fields.Besides,in order to make the analysis of this paper much more significant,three typical cases are presented in this paper.They are the overseas combination of Saab Group from China Youngman Automobile Group in 2011,the overseas combination of Motorola Mobile corporation from Lenovo group in 2014.Cases studies in constructing theory and summarizing conclusion have more persuasion.So the paper selects two private high-tech enterprises' activities in overseas M&A,With the approach of“5W1H'.,the motivation,the progress and the reason of failure are analyzed in detail.As the research shows that the reason for failure of Chinese private enterprise overseas M&A can be summarized as internal causes and external causes.External causes include the host country's political environment,legal system and overseas M&A law in home is imperfect,policy support is not enough,etc.Internal causes mainly include Chinese private enterprises have inadequate preparation before M&A,lack of standardization pricing,the brain drain and lack of M&A experience,etc.on the basement of that,the paper put forward the countermeasures which aimed at the reasons for failure of the internal and external to improve the success rate of our country private enterprise overseas M&A which aimed at the failure of the internal and external reasons.