Research On The Financial Risk Of Cross-border M&a

With the prosperity of our society and the rapid development of our economy,the strength of our enterprises is also growing,coupled with the impact of the "Belt and Road" policy,more and more enterprises have begun to respond to the national call to "go out".Under the background of Chinese enterprises competing for foreign investment and investment opportunities,cross-border mergers and acquisitions(M&A)are becoming more and more popular in China,which has become an important way for Chinese enterprises to go international.However,due to the short development period of cross-border M&A in China and the fact that only a few enterprises have carried out cross-border M&A in China,the vast majority of enterprises have not had a thorough understanding of cross-border M&A,it is often difficult for a company to succeed in cross-border M&A because it only sees the profit but ignores the risk or realizes the risk but does not take reasonable counter measures to control it.In this paper,the financial risk in cross-border M&A is taken as the research object,and the corresponding strategies are proposed,this has great reference value for the enterprises which lack the experience of cross-border M&A to discover and deal with the financial risk.First of all,through the introduction of this paper briefly introduces the indirect related content,such as research background,research significance,and then on the definition of cross-border M&A,types,motivation and so on.Then this paper explains the definition and cause of formation of specific financial risk in cross-border M&A.After paving the way for the related concepts of cross-border M&A and financial risk,this paper selects Geely M&A case of Proton and Lotus to study the financial risk of cross-border M&A.After a brief introduction of the relevant information of the case,this part dividing the case into three phases in chronological order,then classifying the specific financial risks mentioned above according to the phase of the merger to which they belong,this paper makes a detailed analysis of the financial risks in the process of Geely’s M&A of Proton and Lotus.Finally,based on the financial risk analysis of Geely’s M&A of Proton and Lotus,this paper puts forward the corresponding counter measures for each specific financial risk,and at the end of this paper,it summarizes the research results and prospects for the future.It is hoped that the study of this paper can consolidate the study of financial risk theory of cross-border M&A and provide some help for enterprises to identify and control the risks.