Financial Risk Research Of Tianhai Investment’s Cross-Border And Acquisitions Of Ingram Micro

With the continuous growth of China’s economy,the basic pattern of economy and society has also undergone great changes.While enterprises are seeking greater market share and better resources,the new economic normal is also forcing enterprises to adjust their industrial structure.In this context,mergers and acquisitions have become the first choice for enterprises to achieve industrial transformation,and cross-border mergers and acquisitions have become an important way for domestic enterprises to quickly seize the international market.Through transnational mergers and acquisitions,enterprises can learn different concepts,quickly access to cutting-edge technologies,accelerate the development of international markets,and promote the transformation and upgrading of enterprises.However,the success rate of transnational mergers and acquisitions is very low,because there are huge risks far beyond domestic mergers and acquisitions.How to avoid the risk of cross-border mergers and acquisitions and make enterprises go abroad better is a problem worthy of in-depth exploration.For cross-border mergers and acquisitions,financial risks will exist in all stages,not only involving the links of funds,so how to clearly identify,evaluate and control the financial risks in cross-border mergers and acquisitions has important guiding significance for enterprises to implement cross-border mergers and acquisitions.As a case study paper,this paper expounds the concept of financial risk of cross-border M&A on the basis of a large number of domestic and foreign literature.Based on information asymmetry theory,merger synergy theory and risk management theory,this paper introduces the process of this merger and acquisition,analyzes the reasons,and then divides the financial risk in this merger and acquisition into three periods after the merger preparation,implementation and completion.Different financial risks were identified separately.On this basis,the Z value model was used to quantify the bankruptcy risk.It was found that there was no bankruptcy risk for Tianhai investment in the year before the merger and acquisition,and the Z value fell to the broken production area in the year of the merger and acquisition.In the year after the merger and acquisition,it returned to the gray area.On the basis of analyzing the measures and implementation effect of Tianhai investment in dealing with financial risks in various stages,this paper concludes that the financial risks of this cross-border merger and acquisition have not been completely circumvented,but the transformation strategy of the company has been initially realized.And get the enlightenment that should make the plan of merger and acquisition prudently and enlarge financing channel actively.Based on the case of Tianhai’s cross-border merger and acquisition of the United States,the financial risk of this cross-border merger and acquisition is relatively high.Even if the company has adopted a series of measures to reduce financial risks to some extent,there are still areas where it cannot cope with it.The inspiration obtained through this case not only can promote Tianhai investment to make better improvements in the later period,but also provides some experiences and lessons for other companies ’cross-border M&A behavior.