Research On Financial Risks Of Cross-border Merger And Acquisition

Despite the increasing number of cross-border M & A cases in the world and the overlapping wave of M & A,the success rate of cross-border M & A in the world as a whole is not high.Due to the lack of overseas M & A experience,the research on the financial risk of cross-border M & A is still not deep enough,and there are still loopholes in risk prevention and control,which makes the success rate of M & A in China lower than that in the world.Therefore,the study of financial risk and risk management measures of overseas mergers and acquisitions is a matter of great concern to Chinese and even global enterprises and scholars.First of all,this paper combs and expounds the literature and related theories of cross-border M & A and financial risk.Secondly,it summarizes the current situation and development characteristics of cross-border mergers and acquisitions of stateowned enterprises in China.Then the factor analysis method in statistics is used to identify and analyze the financial risk of chemical enterprises in cross-border mergers and acquisitions.Combined with the specific case of Sinochem's merger and acquisition of Syngenta,the analysis of financial statements is carried out,mainly using a variety of ratios,comparable company statistics and industry-specific indicators to study the financial risks in the M & A transaction.According to the analysis results,it is pointed out that there is a high debt repayment risk in this leveraged buyout.in the process of cross-border M & A,Chinese enterprises should focus on the pricing risk,financing risk,exchange rate risk and financial integration risk of the target enterprises.Finally,the risk control suggestions are put forward.The study of financial risk of M & A can help enterprises grasp the main risk points in M & A activities,and improve the awareness of financial risk prevention and control level of enterprises.This paper summarizes and puts forward the useful experience of prevention and control of relevant financial risks,in order to provide reference for the cross-border M & A activities of Chinese enterprises in the future.