Research On The Risks Of Cross-Border Leveraged Buyouts Of Listed Company China

With the implementation of Chinese enterprises' "going out" strategy and the gradual transformation of China's economy,the number of Chinese enterprises'cross-border mergers and acquisitions(m&a)shows a blowout growth.On the one hand,the slow development of global economy further reduces the financing cost.At the same time,China's economy is entering a transition period,the speed of industrial integration is accelerating,enterprises need to find new profit growth points to promote the further development of enterprises,enterprises will be the development of mergers and acquisitions as a choice.On the other hand,as the Chinese government supports economic diversification,many domestic enterprises are gradually turning their eyes to overseas markets to seek opportunities for overseas development.As a new type of m&a,lbo can well solve the problem of insufficient cash in the traditional way,but it has high returns and high risks.Therefore,this paper studies the risks of cross-border leveraged buyouts of listed companies in China and proposes Suggestions on how to prevent the risks in each stage.This article mainly research idea is based on private enterprise cross-border acquisitions west king Kerr,for example,first using the factor analysis method to identify the main risk points in the process of acquisition,then the acquisition process is divided into preparation stage,the financing stage,execution phase,integration phase four stages were analyzed,and the observation in the acquisition of major risks in each stage is how to embody,and proposes the Suggestions to prevent risk in every phase.Financial index analysis,SWOT analysis and comparative analysis are used to analyze the risk of the case.The study found that there are many problems in each stage:improper parameter selection in the process of risk control of valuation in the preparation stage leads to overvaluation of the target company;In the financing stage,the financing plan arrangement does not match the company's solvency,and there is no corresponding guarantee measure for debt repayment.In the integration stage,resources are not reorganized and utilized well.At the same time,the corresponding preventive measures are put forward.According to the real case of the merger and acquisition of Kerr company by xiwang food,this paper also brings enlightenment to enterprises that are going to make cross-border acquisitions.Professional third-party organizations are employed to flexibly apply a variety of valuation methods.Compare the actual operating situation of the enterprise with the financing amount and maturity;Adopt a combination of payment methods;Using financial derivatives to avoid the risk of exchange rate fluctuations in forward transactions;Pay attention to their advantages in the later integration process.