Research On The Valuation Risk Of The Midea Cross-border M&A The KUKA

Because of the economic globalization and the progress of science and technology,cross-border mergers and acquisitions(M&A)have become the most popular and important way for many big companies which can help them to improve their competitiveness and expand the growth space on a global scale.It can also make them to integrate the global value chain and promote international operation.However,according to relevant statistics,the average effective rate of cross-border M&A in Chinese enterprises is only 30% and less than 20% of cross-border M&A can achieve success.There are many reasons for the failure of M&A.This article chooses to study the valuation risk of M&A by the case of Media M&A KUKA.First of all,this paper gives a detailed introduction of the domestic and foreign literatures about the valuation risk of M&A and lists the relevant research.Secondly,the related theories of M&A are introduced,including the Black-Scholes Model and the VaR(risk assessment model).After the introduction of the above mentioned enterprises,four factors that influence the valuation risk of cross-border M&A are studied qualitatively.Then,the valuation model and risk assessment model are used to study the valuation risk.Finally,on the basis of the advice of risk prevention for the case,this thesis also puts forward some measures for Chinese enterprises about prevention of valuation risk.These suggestions include: enterprise should think about their own needs when choose the target enterprise,they have to evaluate target enterprise in all respects to reduce the risk and they should choose the valuation rationally.The possible innovations of this thesis include the following points: firstly,the case is new,it happened in 2016 and has less research.Secondly,in the only study of this case,the vast majority of the study focused on the overall study of financial risk,and there is little research on valuation risk.Thirdly,the case is very representative.Fourthly,this paper puts forward some pertinent suggestions for Chinese enterprises to prevent the risk of transnational merger and acquisition.