| In order to implement the optimization and upgrading of the industrial structure,the power generation enterprises in our country pay more attention to raise the quality of development rather then the speed.Limited by the economic system,private enterprises are actively exploring diversification strategies for business transformation while expending the extent of utilization of new energy.By contrast,private equity investment shows the high growth momentum in China.Traditional enterprises get involved in private equity funds not only because of the substantial profits and the good development prospect,but also to broaden their business.So the cross-border mergers and acquisitions is increasingly frequent to achieve the desired layout of enterprises.Based on the individuation demand of both parties,the detail effect evaluation and potential risks in cross-border M&A deserve to be deeply studied in concrete cases.This paper introduces the typical cross-border M&A case of Baoxin Energy,analyzes the motivation of both sides,and evaluates the market and finacial effects of cross-border M&A,then identify the potential risks factors in the process of M&A from the perspective of practice,and put forward corresponding risk prevention suggestions.At the same time,this paper provides some enlightenment for the cross-border M&A activities of other traditional enterprises in corporate strategy,business capability,M&A process and operational performance. |
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