A Case Study Of Cross-border M&A Between BTG Hotels And Homeinns Hotel Group

With the deepening of economic globalization,cross-border mergers and acquisitions of Chinese enterprises are also booming.M&A is a fast way to expand the scale and business of an enterprise,which can improve the business performance rapidly.However,there are many cases in which the effect of M&A is not ideal or even the M&A fails.These enterprises are often too hasty and optimistic in the decision-making stage of M&A,and do not fully consider all kinds of risk factors.Cross-border M&A involves a wider range,has a greater degree of difficulty,and faces more complex and diverse risks.In different stages of M&A,the types and influencing factors of risks are also different.Only by identifying and evaluating the risks according to the characteristics of different stages of M&A,can we help enterprises to make a more reasonable M&A plan.In this paper,theoretical analysis and case study are used to study.In the part of theoretical research,a large number of domestic and foreign literatures are reviewed and summarized,and the related research results of the motivation and risk of cross-border M&A are introduced.In the case analysis part,based on the case of cross-border M&A between BTG Hotels and Homeinns Hotel Group,this paper focuses on the motivations and the risks faced in the process of cross-border M&A.In the analysis of M&A motivation,it mainly analyzes the development trend of the hotel industry,BTG Hotels' relevant resource benefits and Implementation conditions,and the relevant resources mainly include market,management and brand.In the analysis of cross-border M&A risks,this paper comprehensively analyzes the main risk elements and carries out risk identification from the overall legal risk,the financial risk in the transaction stage and the integration risk after the completion of the M&A.The main structure of this article consists of the following five aspects.The first chapter is the introduction part,which describes the background and significance of this topic,and systematically sort out the literature and research on the causes and risks of cross-border M&A at home and abroad at this stage,which lays a good theoretical foundation for the following research.The second chapter is an overview of cross-border M&A theory.First of all,according to the current research results,this paper introduces the related concepts of cross-border M&A and introduces the current main types of cross-border M&A,and further introduces the financing and payment methods of cross-border M&A,and finally analyzes the general motivation and basic risk types of cross-border M&A.The third chapter is the case introduction of cross-border M&A of BTG Hotels.First of all,it analyzes the motivation of cross-border merger and acquisition of BTG Hotels in detail,and then introduces the method and process of cross-border M&A of BTG Hotels,and explains the positive role of cross-border share exchange.The fourth chapter is the risk analysis and evaluation of cross-border M&A of BTG Hotels.First of all,it summarizes the risk factors of cross-border M&A from three aspects of legal risk,financial risk and integration risk;then,it analyzes the measures of cross-border M&A risk and summarizes relevant experience.The fifth chapter is the conclusion of this paper and the enlightenment.At present,the research on the risk of cross-border M&A in China is still in a scattered stage,which often stays in the risk analysis of a certain element or a certain stage of cross-border M&A,and lacks a comprehensive analysis of the overall risk in the whole process.Through the above research,this paper analyzes the risks in the whole process of cross-border M&A,and provides reference for Chinese enterprises to prevent cross-border M&A risks.BTG Hotels has innovatively used the cross-border share exchange method.In the past,the cross-border share exchange was under the strict supervision of the government,which was rarely successfully implemented in China.Today,when the national capital market is fully open to the outside world,the cross-border share exchange has great feasibility.However,at present,the domestic research on how to implement the cross-border share exchange is less,and this paper enriches China's research results on the implementation of cross-border share exchange,and the successful experience of the implementation of cross-border share exchange of BTG Hotels is summarized to provide reference for other enterprises.