Risk Analysis And Prevention Of Transnational Leveraged Buyout Of Private Enterprises

At present,China's economic reform is being carried out in an all-round way,but the most important thing is enterprise reform.In the enterprise reform,"merger and acquisition" as an effective form,more and more attention and favor by the government and all walks of life.Many small and medium-sized enterprises are attracted by leveraged mergers and acquisitions in the form of small income,but the capital market of China is not perfect.At the same time,there are few successful examples of leveraged mergers and acquisitions,so there is no formed risk aversion system.Many enterprises do not have a clear understanding of the risks involved in leveraged mergers and acquisitions when they are financing.Especially for private enterprises,because their cumulative efficiency is not high,if they want to continue to grow themselves,it is not realistic to achieve it only through their own capital.However,excessive dependence on leveraged M&A mode for financing and M&A can generate higher returns,but the risks will increase.Therefore,the research on risk analysis and prevention of cross-border leveraged mergers and acquisitions of private enterprises is of great significance.On this basis,the core issue of this paper is what risks exist in different stages of cross-border leveraged mergers and acquisitions of private enterprises and how to prevent these risks.On the basis of the existing research,this paper studies the risk analysis and prevention of transnational leveraged mergers and acquisitions of private enterprises from the perspective of risk identification,risk analysis,risk control and prevention,based on the relevant theories of transnational leveraged mergers and acquisitions,using literature research,case analysis,causal analysis and other methods.?Firstly,this article will summarize the literature related to cross-border M&A and leveraged M&A,and elaborate the related theories used to study the risk of leveraged M&A.Secondly,combined with the case of Xiwang Food M&A Kerr,this paper divides the process of cross-border leveraged M&A into three stages according to the event process:pre-preparation stage,financing and payment stage,and post-integration stage.At the same time,it summarizes the risks in different stages of M&A.By analyzing the measures and Strategies of Xiwang Food M&A,this paper puts forward reasonable suggestions for the future cross-border leveraged M&A of private enterprises in China.Finally,the conclusion is drawn that leveraged mergers and acquisitions are not suitable for private enterprises with large capital.The characteristics of high risk of leveraged mergers and acquisitions need private enterprises to choose carefully when applying them.Leveraged mergers and acquisitions have different types of risks in different stages of mergers and acquisitions,and all kinds of risks are accompanied,not a single isolated risk.Financial risk brought by financing is the core risk of leveraged mergers and acquisitions.The key to successful implementation of leveraged mergers and acquisitions by private enterprises is to have a reasonable transaction structure and financing strategy.The innovation and significance of this paper lie in:Firstly,unlike the existing overseas M&A cases of large groups,the main body of this case study is private enterprises in China.As the main body of leveraged M&A,Xiwang Food lacks both its own capital and overseas M&A experience.It is more meaningful to study its overseas leveraged M&A for other small and medium-sized private enterprises.Righteousness.Secondly,previous studies on leverage mainly focused on the choice of financing methods of M&A,but lacked systematic research on different stages of the process of leveraged M&A.This paper divides the process of M&A into three stages according to the time course,and analyses the risks in the process of leveraged M&A in all aspects.Through this study,on the one hand,let our private enterprises use innovative M&A methods to broaden the source of acquisition funds;on the other hand,control risks throughout the process,establish a reasonable risk early warning mechanism,improve the success rate of leveraged M&A of private enterprises.