Research On The Risk And Avoidance Of Gambling Agreements In Cross-border Mergers And Acquisitions

Under the current economic policy,cross-border M&A is an effective way of capital operation in terms of improving business capability and rapidly increasing business efficiency.With the popularity of such awareness,the success stories of cross-border mergers and acquisitions in China have been increasing.However,behind this prosperous market prospect,there are still many obstacles to the cross-border M&A path of Chinese enterprises,and how to break through this obstacle to better achieve cross-border mergers and acquisitions has always been a problem worth exploring.This paper analyzes the model of the case study of the reasonable and effective use of the gambling agreement in the cross-border mergers and acquisitions of listed companies.In this case,Metropolitan Communication Technology Co.,Ltd.,as an investor,successfully used the gambling agreement to acquire the BBHI company,with the help of the M&A fund.In this case,the basic concept is first explained,and then the successful case is introduced in detail and the successful mergers and acquisitions are supported by the performance of the company in the next two years.Finally,this case is typical,and the actual implementation of the gambling agreement is Reasonable avoidance of problems and risks.From the cross-border M&A case,the following two points can be obtained by using the gambling agreement.First,effective cross-border mergers and acquisitions create favorable conditions for the gambling agreement.In cross-border mergers and acquisitions,M&A funds are generally involved.M&A funds have a large amount of practical experience and first-hand resources.This can overcome the problem of payment and geographical differences between listed companies in cross-border mergers and acquisitions,and reduce the problem of unequal payment considerations in cross-border mergers and acquisitions.Second,the gambling agreement is not only To some extent,it reduces the valuation risk in mergers and acquisitions,and also reduces the integration risks of the two companies after the completion of the merger.The most important thing is that the reasonable design of the terms of the gambling agreement can greatly alleviate the economic pressure of the investors..In order to reduce the information asymmetry in cross-border mergers and acquisitions,it is necessary to implement a reasonable and effective gambling agreement.At the end of the case,it is concluded that in the merger,the gambling agreement under the participation of the M&A fund effectively reduced the series of M&A risks such as market risk,valuation risk and integration risk in cross-borderM&A.The research results show that this kind of utilization of the M&A fund as a bridge between the listed company and the acquired party,the listed company's capital operation mode of purchasing stocks is risky in the form of merger control,and the copyability is also strong.This acquisition provides a model for future cross-border mergers and acquisitions.