Financial Risk Control Of Cross-border M&A Of Small And Medium-sized Private Enterprises Based On Apexmic

Under the competition pressure in the international market and the survivals are fittest among the enterprises.Chinese enterprises have realized that transnational mergers and acquisitions is the main form to attract foreign investment and to expand their strength constantly.Due to the expansion of the scale of China's private economy,small and medium-sized private enterprises eager to enhance their market position.Export oriented economy has brought huge foreign exchange reserves to China,and laid a solid capital foundation for cross-border mergers in China.Meanwhile,enterprises are facing arduous and complex transformation and innovation pressure.Enterprises integrate overseas resources and domestic resources effectively by cross-border m & a,which can inject new impetus for sustainable development,which is the inevitable choice of society development and one of the fastest ways for small and medium-sized private enterprises to go to the world.But it is unavoidable that the success rate of cross-border m & a of Chinese enterprises is relatively low,because of the risk of international market.The risk of cross-border m & a of private enterprises is greater,because the external reasons including policy constraints,the relevant laws are not sound,the capital market is not perfect,the corresponding institutions are missing and the internal factors including transnational management level and financing ability.At the end of November in 2016,Apexmic announced acquisition of Lexmark at the cost of more than 4 billion dollars.It has achieved the classic form of "small hit big" merger form,because income scale of the two sides is 10 times difference,the size of assets is 8 times difference.This paper sorting out the domestic and theory of cross-border m & a and financial risk,expounds the financial risk problems in the preparation,implementation and integration stage of m & a,then introduces the case of Apexmic,analyzes the financial risk of each stage and the ways to avoid risk.Finally,introduces the financial risk control,including the implementation of a comprehensive investigation in cross-border mergers and acquisitions,broaden the financing channels,choose a reasonable way of payment,the implementation of cooperative and improve profitability of risk management.The purpose of this study is to provide some valuable suggestions on the financial risks that may be encountered in the process of cross-border m & a of small and medium-sized private enterprises in China.