Research On The Risks And Countermeasures Of Transnational Mergers And Acquisitions Of Chinese Enterprises

In recent years,more and more Chinese enterprises take cross-border M & A as a strategic choice,attempting to quickly establish competitive advantage through cross-border M & A as a foreign direct investment.However,many failed cases of cross-border mergers and acquisitions also show that not all enterprises can absorb the potential benefits of cross-border mergers and acquisitions,Chinese enterprises in the path of cross-border acquisitions is not a wide expanse of flat land.On the contrary,enterprises also face severe challenges in cross-border mergers and acquisitions.Therefore,compared with the multinational corporations in developed countries,how can Chinese enterprises at a relative disadvantage upgrade their innovation ability and develop their competitive advantages through cross-border mergers and acquisitions?This is a question that we need to think seriously.Specifically,what factors affect the success or failure of cross-border M & A ? How can Chinese enterprises improve the completion rate of cross-border M & A ? The discussion of these problems is not only of practical significance to Chinese enterprises which need to develop competitive advantage through nationalization,but also helpful to deepen and develop the theory of enterprise internationalization.The internationalization behavior of enterprises in developing countries is different from that of transnational corporations in developed countries.however,the literature in the field of transnational mergers and acquisitions in the past mainly focuses on transnational corporations in developed countries,and we lack the understanding of the success or failure of transnational mergers and acquisitions affecting enterprises in developing countries.In addition,the previous literature usually focuses on the factors that affect the post-merger integration of cross-border mergers and acquisitions,while ignoring the success or failure of the pre-merger phase of cross-border mergers and acquisitions and their relationship.Finally,the existing research usually focuses on the multinational corporations in developed countries.we lack the research on the risk of Chineseenterprises' cross-border M & A and the countermeasures.This paper first describes the concept of M & A and the motivation of M &A,then from three stages(before,during and after)to explain the risks faced by M& A followed by the introduction of risk management related theory of M & A,after the theoretical analysis,the process of China's cross-border M & A is analyzed,and the risk of Chinese enterprises in cross-border M & A and risk of five reasons for surgical analysis,followed by the success of Sany Heavy Industry cross-border M& A as a case for a comprehensive and detailed analysis,draw inspiration: careful selection of M & A objectives;Actively seek government policy support;Double brand operation,pay attention to integration;Joint intermediary agencies,reduce the risk of mergers and acquisitions;Localized operation;Adopt a variety of financing means,mixed payment;Stable acquisition of target company.Through the analysis of the case and the enlightenment,finally put forward the relevant measures to optimize the risk prevention of cross-border mergers and acquisitions of Chinese enterprises,to establish a lighthouse for the road of cross-border mergers and acquisitions of Chinese enterprises in the future.To sum up,the road of cross-border mergers and acquisitions of Chinese enterprises bumpy,obstacles,cultural differences,legal differences,political differences,institutional differences,etc,are the problems that need to be taken seriously by enterprises,if enterprises do not cause enough attention to these issues,blind mergers and acquisitions will only be futile.Only by facing up to and actively dealing with these differences,then the road of mergers and acquisitions will not be winding.