A Study On The Risks And Counter Measure Of Lattice Cross-border Merger And Acquisition To Philips Lumileds

Since 2008 the global economic crisis occurred,the world's economy was in sluggish growth.Major developed countries like the United States and the European Union are in economic downturn,even recession,and their overseas assets shrink sharply.It is a good opportunity for Chinese enterprises to acquire foreign companies,and the implementation of China's “Belts and Roads” Initiative pushes Chinese enterprises to "go out".Chinese enterprises have set off a new wave of cross-border mergers and acquisitions.With quickening of the internationalization of Chinese enterprises,the "going out" strategy has became a magic weapon for more and more excellent enterprises to explore new territory.Expanding the scale,occupying the resources and building the brand,of these have became the enterprises' important demands for cross-border M&As.However,the risks are concomitant of cross-border M&As.The Political,legal and cultural risks,the risks of M&As strategies,financial,and the consolidation risks after M&As,of these can be a lethal blow to Chinese enterprises if once mishandled.Therefore,how to identify M&As risks when making use of the unlimited business opportunities brought by M&As,and take feasible measures to counter the risks in order to achieve the M&As objectives,of which has became an important step for Chinese enterprises to carry on their internationalization process and absorb foreign advantageous enterprise assets.This paper takes Lattice Power's M&A to Philips Lumileds as a case,analyzes the M&A risks and the counter measures in the case based on the existing theory and research achievements,and tries to find out proper measures to prevent the risks of M&As,to provide reference for similar case,and to improve the success rate of enterprises' M&As activities.This paper is divided into six parts.The First part is the introduction,includes the background of the subject and its research significance,the contents of the article and its innovative points.In the second part,it expounds the current domestic and international research situation of cross-border M&As,and the relevant theoretical basis.The third part is the company introductions of both parties,and an introduction of the M&As case.In the fourth part,the paper analyzes the risks of Lattice Power Company in the merger and acquisition,including the main risks of decision-making,law,finance,intellectual property,differences of company culture,governmental investigation and payment method.The fifth part analyzes the specific counter measures of Lattice Power Company to the M&As risks,and concludes its' s experience and deficiencyies.Finally in the sixth Part,the paper makes the conclusion for the M&As risks and counter measures.