Analysis Of Financial Risk Control In Cross-border Merger And Acquisition Of Ingram Micro By HNA Group

Since the 1990s,with the continuous development of economic globalization,the promotion of the new technological revolution and the industrial revolution,the world economy has shown rapid growth,the pace of global trade and investment liberalization has accelerated.With the opportunity brought about by China's accession to the WTO,the global cross-border M&A stage has surged and set off a strong wave of China.A large number of outstanding companies such as HNA Group,Lenovo and CNOOC have been exposed in overseas mergers and successes.Cross-border M&A is an important means to promote global market competition and promote market restructuring.As an effective method for rapid accumulation of corporate capital and winning extraordinary development,it will undoubtedly become an ideal way and choice for Chinese company to expand its international market share,acquire advanced technology and resources,and seek to be in the world market.Throughout the overseas mergers and acquisitions cases of Chinese companies,it is found that there are many irrational mergers and acquisitions problems,and there is no effective control over the various risks hidden in the M&A process.How to let these companies start from their own characteristics and development status,quickly improve their own strength,and effectively complete the pre-merger goals,is a difficult problem that Chinese scholars have been studying and considering.The object of the paper analysis is not the “strong mergers weak” type of mergers and acquisitions that are common in cross-border M&A cases,that is,the M&A activities that the target enterprises are forced to carry out due to the existence of a business crisis,but the “weak mergers strong” type of mergers and acquisitions.By studying the financial risks of such cross-border M&A activities,the paper proposes measures to prevent financial risks in the process of cross-border M&A.On the one hand,it provides a new way of thinking for the case study of financial risk of cross-border M&A.On the other hand,it also provides some reference for the practical activities of corporate financial risk prevention in cross-border M&A.The main body of this paper consists of six parts,which are the introduction part,the theoretical overview of the financial risk and control of cross-border M&A,the introduction of HNA Group's acquisition of Ingram Micro International,the acquisition of Ingram Micro's financial risk analysis by HNA Group,and the HNA Group's merger and acquisition process.Financial risk control measures and case studies conclusions and implications.The introduction introduces the research significance and research background of cross-border M&A risk control,and summarizes the theoretical research status of scholars at home and abroad.The second part introduces the relevant content of cross-border M&A risk,summarizes the concept and control method of enterprise cross-border M&A risk control and expounds relevant theories.The third part introduces the case of HNA Group's acquisition of Ingram Micro International,and introduces the status,motivation and process of M&A and M&A.The fourth part analyzes the case in depth and points out that HNA Group has four types of risks in the middle and the middle of the merger,namely pricing risk,financing risk,payment risk and integration risk.The fifth part is an in-depth analysis of HNA Group's control measures and effects in the face of these financial risks,financial risk control in the mid-term of M&A and various risk control in the later stage of M&A.The last part draws the conclusions of the case and the implications for cross-border mergers and acquisitions by private enterprises.The main contribution of this paper is to study and analyze the financial risks and control measures in the typical case of "weak mergers strong" as HNA Group with Ingram Micro through the combination of theory and case study,and draw the corresponding conclusions and enlightenment.The enlightenment part of the case mainly includes the following four aspects: first,improve the internal control of capital operation;Second,the purpose of mergers and acquisitions and corporate strategic planning fit;Third,to guard against the financial risks of leveraged mergers and acquisitions,to avoid aggressive mergers and acquisitions;Fourth,we should pay attention to the integration of enterprises in the later stage of merger and acquisition to achieve a higher level of financial synergy.Hope to the existing theory of cross-border M&A financial risk further deepen and validation,in order to cross-border M&A activities of Chinese enterprises is now beginning to provide certain reference and reference,in the process of cross-border M&A can better identify the financial risk,enhance its ability to resist financial risks,thus greatly enhance the possibility of M&A success.The relevant enlightenment obtained in this paper is expected to give the enterprises that want to conduct cross-border mergers and acquisitions in the future to realize the financial risks that must be paid attention to in the process of mergers and acquisitions while expanding their businesses,and promote the internal and external linkage of enterprises to take corresponding preventive measures,so as to better avoid risks and achieve the synergistic effect of mergers and acquisitions and achieve the expected goals of mergers and acquisitions.At the same time,it is expected to provide some references for scholars of financial risk control theory of cross-border mergers and acquisitions who need further discussion at present,so as to improve the theoretical basis of financial risk control of cross-border mergers and acquisitions in China and achieve the combination of theory and practice.