Case Study On Risk Prevention Of Transnational Mergers And Acquisitions

As China's economy soars at a high speed,corporate mergers and acquisitions continue to increase.The cross-border M&A activities of Chinese companies are not long and they start relatively late.Chinese companies are moving overseas,and cross-border mergers and acquisitions are still a matter of recent years.Many large Chinese companies pursue internationalization,thereby expanding their global business and entering overseas international markets.Cross-border M&A is an important way to achieve this goal.In recent years,Chinese companies have frequent cross-border M&A activities,but their success rate is not ideal.Therefore,it is especially important to do a good job in risk prevention and control in cross-border mergers and acquisitions.Corporate mergers and acquisitions are activities in which risks and profits coexist.On the one hand,corporate mergers and acquisitions can help enterprises develop,but at the same time there will be some problems,such as the choice of target corporations,the valuation of target companies before the merger,the financing payments in mergers and acquisitions,and the integration after mergers and acquisitions.These risks are widespread in all stages of cross-border M&A activities.This paper takes the recent Hisense acquisition of Toshiba image as an example to analyze the value assessment risk in this M&A event,the financing and payment risks in the M&A process,and the combined integration risk,to find out the risks and problems in the merger.And propose countermeasures and suggestions to solve the problem.It is hoped that through the combination of theory and practice,analyze specific cases,sum up experiences and lessons,and provide useful reference for overseas mergers and acquisitions of related enterprises.Link theory to practice and serve the reality.Based on the relevant literature at home and overseas,the paper applies the internal control principle and uses case analysis methods to study the risk management issues in enterprise mergers and acquisitions.This research content mainly includes three parts: the first part is about theoretical analysis,that is,the current relevant theory at home and abroad,the causes,influencing factors and coping methods of M&A risks,which are paved the way in theory;the second part is case study,that is,through Hisense'sacquisition of Toshiba Image's research on cross-border M&A risk prevention and control cases,briefing both companies,analyzing the causes of mergers and acquisitions,reviewing the M&A process,and analyzing the risk prevention and control system in M&A,and finally evaluating the M&A effect;It is a countermeasure suggestion,that is,to do a due diligence before the merger,to familiarize with the target enterprise,to do a risk early warning mechanism,and to rationally select the target enterprise.In the process of mergers and acquisitions,we must do a good job in prevention and control of various risks.After the completion of mergers and acquisitions,we must strengthen the integration of enterprises,including corporate finance,corporate culture and personnel integration.The main contribution of this paper is to combine theory with case studies to study and analyze the financial risks and control measures in the case of Hisense's acquisition of Toshiba.I hope to continue to deepen my understanding and deepen my research on the risk prevention and control theory in cross-border mergers and acquisitions we apply.In the case analysis process,the paper analyzes the risk prevention and control methods used by Hisense to acquire Toshiba image in the initial stage,implementation stage and M&A integration stage,and establishes a risk prevention and control system,which is combined with theoretical research and case analysis.Summarize and propose countermeasures for Chinese enterprises' cross-border M&A risk prevention and control.