Risk Prevention Of Overseas Mergers And Acquisitions In The Automotive Industry

As an emerging developing country,China has gradually joined the wave of mergers and acquisitions in the world economy with the continuous development of the economy and society in recent years.Since 2006,the tide of Chinese corporate mergers and acquisitions has experienced a period of crazy growth.However,since2016,the foreign economy has been weak,the downward pressure on the renminbi has continued to increase,and the domestic economic structure is facing an urgent transformation.Most of industries in China are in a critical period of upgrading and transformation.More and more Chinese companies hope to achieve large-scale integration through mergers and acquisitions.Under this background,the number of M&A cases in China has been increasing year by year,but the success rate has been at a low level.Therefore,it is particularly important to explore the risks that enterprises will encounter in cross-border mergers and acquisitions,which risks have a high impact on M&A results and how to prevent various risks in transactions.This paper mainly uses the case of H company to acquire F company to analyze the above problems.The combination of qualitative and quantitative analysis is used to analyze the whole process of this case.In terms of qualitative analysis,through the combination of micro-analysis to the enterprises and macro-analysis to the automotive industry,the M&A cases are mainly faced with three types of risks,which are strategic risk,financial risk and integration risk.In the aspect of quantitative analysis,the analytic hierarchy process is mainly used to define the risk index evaluation system of the case,and the risk assessment matrix is constructed.After the consistency test,the fuzzy mathematics method is used to calculate the risk degree of each risk factor,and finally the Risk level of the case is calculated.The risk rating is76.47,indicating that the M&A risk is good and the success rate is high.At the end of the article,combined with this specific case analysis,the risk control measures are summed up,and finally there are universal operational risk prevention measures in the automotive industry,in order to reduce potential losses and improve the success rate of Chinese companies' overseas mergers and acquisitions.