The Risk And Solutions Of Firms’ Cross-Border Merger And Acquisitions

In the process of economic globalization,innovation is always the ultimate goal of development.In this era,the whole world is pursuing technological innovation.Chinese enterprises urgently need to enter the world’s high-end industries and master the core technology.In order to quickly obtain advanced technology and mature management experience,more and more C hinese enterprise choose overseas M & A as the most effective way.But if the selection of target enterprises and the evaluation of their own ability are improper or wrong,it will bring immeasurable negative effects to the development of enterprises.Only a few maufacturing enterprises dare to be the first to take the lead in cross-border deal,such as Geely Automobile.The analysis of these cases can provide specific ideas for other small and medium-sized enterprises to prevent the risk of cross-border deal.This paper studes the risk of cross-border deal in a ralatively new wa y,focusing on the evalution from the perspective of risk in different stages,and comprehensively analyzes various risk factors.This paper focuses on 2018 Geely’s acquisition of Daimler.Based on the analysis of the cross-border acquisition,its strategic motivation and financing channels,this paper study three most important motivations of Geely and Daimler’s M&A and the risks in the prcess of acquisition,and puts forward some suggestions for the problems:(1)the global automobile market has become sa turated(2)affected by the global capital market,combined with the analysis of Geely’s financial situation in recent years,the liquidity risk of Geely’s acquisition can not be ignored.Financing and payment risk control mechanism is relatively reasonable.(3)In the process of M & A,we should establish a good risk control mechanism,and pay attention to the integration of human resources and culture in the later stage.