Financial Risks And Prevention Mechanism Of Cross-border Mixed M&A Of YY Company Limited

Since the reform and opening up,China's comprehensive strength has become increasingly strong,more and more Chinese companies begin to try cross-border M&A,however,most enterprises in cross-border M&A are faced with such problems as unreasonable valuation of target enterprises,financing and payment links not in line with the M&A enterprises' own situation,and poor integration,which will directly affect to prevent the overall value creation of enterprises after M&A,leading to the value destruction of cross-border M&A and may even lead to failure.From the perspective of M&A methods,cross-border mixed M&A is based on its complete characteristics of cross-industry M&A,which has the maximum information asymmetry,therefore,there are larger,more and more complex M&A risk than the cross-border horizontal M&A and cross-border longitudinal M&A.And the risk factors in all aspects of cross-border M&A,such as culture,policy,industry and many other risk factors,can finally integrate into the financial risks.Therefore,the study of cross-border M&A,especially financial risks and prevention mechanism in cross-border mixed M&A,is of great significance for improving the success rate of cross-border M&A in China and the improvement of overall corporate value through cross-border M&A.The paper takes the cases of cross-border mixed M&A of American ARC Company and Punch Company in Belgium of YY Company Limied as the research object,Through collecting and collating relevant data and materials and reading relevant research literature,based on the basic theories related to cross-border M&A,makes an in-depth study on the financial risks faced by YY Company Limied,and according to the corresponding risk,analysis of the preparation stage,implementation stage and cross-border M&A integration of the three phase under different financial risks and sources,and puts forward the corresponding according to risk prevention mechanism.By analyzing the financial risks in the case of cross-border mixed M&A,this paper hopes to provide some enlightenment for other enterprises facing similar problems.First,using scientific method to formulate strategy of M&A is the premise of successful cross-border M&A.Second,the reasonable evaluation of target enterprise value is the core of successful cross-border M&A.Thirdly,designing reasonable financing and payment scheme is the bridge to the success of cross-border M&A.Finally,effective integration of resources of both parties is the guarantee of successful cross-border M&A.