Financial Risk Analysis And Prevention Research On Cross-border M&A Of Company A And B

In recent years,under the influence of economic globalization and foreign trade friction,China's market competition has become increasingly fierce and many industries are in a stagnant period of development.In order to change this situation,Chinese companies have adopted globalization as a response,hoping to expand the economic scale,occupy the advantages of the industry,expand the foreign market,optimize the allocation of resources,and improve the company's comprehensive development Competitiveness.Therefore,many companies in China choose cross-border M&A.However,many companies have encountered greater opportunities and challenges because of the implementation of cross-border M&A which shows that not all companies implementing cross-border M&A can succeed.Therefore,how to help companies successfully complete cross-border M&A and use it to improve the innovation ability and competitive advantage of Chinese companies needs to be studied.This paper takes case analysis as the main research method,and the research object is A company's cross-border M&A of B company.It identifies and analyzes the financial risks in the process of M&A,and puts forward some preventive suggestions.This paper introduces the risk of cross-border M&A and prevention of current research status at home and abroad,cross-border M&A and financial risk and other related theories.It describes the background conditions of cross-border M&A between company A and company B,analyzes how to implement cross-border M&A and how to achieve results in the process of cross-border M&A.There are three stages to identify and analyze the possible financial risks in the process of cross-border M&A.Comparative calculation and theoretical analysis of the financial data in the preparation stage,implementation stage and integration stage of M&A.Finally,based on the above analysis results,some suggestions are put forward for the prevention of financial risks in cross-border M&A:in the preparation stage of M&A,the company should select the appropriate target enterprise and the right valuation method;in the implementation stage of M&A,the company should broaden the financing channel and adopt various ways to pay;in the integration stage of M&A,the company should implement light integration to enhance its comprehensive competitive strength and establish a suitable enterprise's own Financial risk prevention system.It is hoped that this study can provide some reference for Chinese companies to implement cross-border M&A in the future.