A Study On Risk Assessment Of Chinese Enterprises' Overseas Mergers And Acquisitions Based On F-AHP

Research BackgroundWith the acceleration of the process of world economic integration,more and more companies around the world have joined the wave of overseas mergers and acquisitions in order to realize the strategy of internationalization of enterprises.However,due to the lack of protection of Chinese enterprises by the relevant government departments in China and the lack of global business management concepts,the risks involved in overseas mergers and acquisitions of Chinese enterprises are becoming more and more prominent.Therefore,how to objectively evaluate the overseas mergers and acquisitions of Chinese enterprises the risks that will be faced and the provision of objective and accurate decision-making information for enterprises have become the hotspots in the research of management science in recent years.The M&A case selected in this paper is the M&A activity of Wanda Group,one of the more successful private enterprises in China.Wanda Group is the pioneer of international development in China's private enterprises.Under the background of the policy of encouraging the cultural enterprises to “go global”,Wanda Group firmly grasped the opportunity and actively carried out its overseas mergers and acquisitions in the film market in light of its own needs from the real estate industry to the service industry.Research PurposeThe purpose of this paper is to build a foreign M&A risk evaluation system by summarizing the domestic and foreign literature on the risk assessment of overseas M&A,analyzing the dimensions of overseas M&A risks and specific risk assessment indicators.This paper studies the evaluation of overseas M&A risks,aiming to use quantitative results to explore the measures that enterprises should take in the process of overseas M&A.It is hoped that through the research of the risk of Wanda Group's acquisition of Legendary Pictures,it can control the risk of overseas M&A.Certain guiding role.Main contents and viewsThe main content of the paper can be divided into the following parts:The first chapter is the introduction.Firstly,the research background and significance of this paper are expounded.Based on this,the ideas of this paper are proposed.Secondly,the methods of this paper are proposed.Finally,the main contributions and shortcomings of this paper are summarized.This chapter mainly introduces the writing background of this article and the overall structure of the research,paving the way for the following.The second chapter is a literature review.This chapter summarizes the research results of domestic and foreign scholars from the development history of overseas M&A of Chinese enterprises,the identification of overseas M&A risks,the risk evaluation of overseas M&A,and the risk prevention and control of overseas M&A.The third chapter is the theoretical analysis of the risk evaluation of overseas M&A of Chinese enterprises.This chapter analyzes the factors of M&A risk evaluation of Chinese enterprises by using transaction cost theory,synergy theory and risk evaluation theory as the theoretical basis of risk evaluation.Based on the risk evaluation principle,the risk is analyzed in three stages of M&A transaction activity.The cause and construction of risk assessment index system,the third section of this chapter on the basis of the above,expounds the application principle of F-AHP in risk assessment,and finally combs the overall status of overseas M&A of Chinese enterprises.The fourth chapter is the case study part of this article.This chapter firstly explains the mergers and acquisitions,motivation and process of Wanda Group's acquisition of Legendary Pictures,and then constructs Wanda Group's M&A risk evaluation index system,and uses F-AHP to elaborate on each item.The calculation process of risk assessment and the calculation results are obtained.The risk model of Wanda Group's acquisition of Legendary Pictures is constructed.The M&A risk is evaluated according to the corresponding scores of each dimension risk.Finally,the M&A risk evaluation results are summarized.The fifth chapter is the countermeasures and suggestions part of this paper.This chapter puts forward suggestions and opinions on the three stages of overseas M&A of enterprises,and expounds the measures to prevent and control the risk in the strategic decision-making stage,transaction negotiation stage and integrated management stage.The sixth chapter is the conclusion of this article.According to the F-AHP in the application of Wanda Group's acquisition of Legendary Pictures' overseas M&A risk evaluation,the Wanda Group's M&A motives and the risks are summarized.Risk prevention measures that can be taken during M&A and the next research direction are proposed.Major contributionsThe main contributions of this paper are as follows:1.This paper takes the risk evaluation of overseas mergers and acquisitions of Chinese enterprises as the research object,expounds the theory of transaction cost,synergy effect and risk management.Based on these theory,this paper discusses the motivation of overseas M&A of Chinese enterprises and constructs the risk evaluation index.The system explains how to identify and evaluate the risks of overseas M&A,and improves the analytical framework for evaluating the risks of overseas M&A of Chinese enterprises.2.This paper constructs a relatively complete overseas M&A risk evaluation system,and introduces the F-AHP method as a risk evaluation tool to qualitatively analyze and evaluate the overseas M&A risks of Chinese enterprises.The case study results in this paper confirm the applicability of the F-AHP in the risk assessment of overseas M&A,which also helps the academic community to further study the risk evaluation.3.Wanda Group has previously acquired AMC and Hoyts.At present,some scholars in China have conducted risk evaluation research on Wanda Group's acquisition of AMC and Hoyts.This paper analyzes Wanda's acquisition of Legendary Pictures and conducts qualitative evaluation of overseas M&A risks,providing enterprises with a reference for estimating the risks of each stage of M&A.