Research On Financial Risk Control Of Cross-border Leveraged M & A Of Private Enterprises

From 2015,Chinese enterprises began to carry out large-scale overseas M & A.In the overseas M & A of Chinese enterprises,the financing channel of private enterprises is narrower than that of state-owned enterprises.After comprehensive consideration of development strategy and investment cost,private enterprises often choose the way of leverage to carry out overseas M & A.However,the leverage of M & A will increase the financial risk of each link of M & A.Therefore,how to effectively control the financial risks brought by cross-border leveraged M & A has become a problem that private enterprises must face in the process of overseas M & A,and also a topic that needs in-depth study in the academic circles of our country.Therefore,this paper aims to study the financial risks faced by Chinese private enterprises in overseas leveraged M & A,analyze the corresponding control measures,and put forward suggestions for improvement.This paper analyzes the financial risks and control problems faced by Chinese private enterprises in cross-border leveraged M & A by literature research and case analysis.First of all,it elaborates the current development of cross-border M & A in China,then leads to the research background and significance of this paper,and summarizes the research literature on the motivation,risk and prevention of cross-border M & A at home and abroad.Secondly,it explains the concepts of cross-border M & A,leveraged M & A and financial risk of cross-border leveraged M & A,and summarizes the risk control mechanism of cross-border leveraged M & A of private enterprises on the basis of financial risk control theory.Thirdly,from the case of Tianhai investment M & A of Yingmai international,this paper introduces the cases from the aspects of the basic situation of the two sides,the motivation of M & A and the implementation steps of M & A,and then probes into the fourtypes of financial risks of cross-border leveraged M & A of Tianhai investment in M & A,including valuation risk,financing risk,payment risk and integration risk.Finally,the paper analyzes the control measures and defects of Tianhai investment in the face of these financial risks,and puts forward suggestions for the private enterprises to control the financial risks of cross-border leveraged M & A.The innovation of this paper lies in that although there have been case studies on overseas M & A of private enterprises in China in the past,most of them are general studies on various risks in the process of M & A,but this paper only studies the financial risks of overseas M & A of private enterprises in China,which has a certain degree of innovation,and can provide a reference for the immature cross-border M & A activities in China Set reference value.