A Case Study On The Financial Risks Of Cross-border M&A Of Hna Group

With the rapid development of economic globalization,the relationship between global enterprises has become increasingly close.In the context of increasingly fierce international competition,enterprises from all over the world are seeking for development opportunities in order to expand their strength,improve their international influence and quickly connect with the international market.Cross-border M&A has become one of the important ways to promote the integration of foreign enterprises into economic globalization.Some enterprises represented by HNA Group,benefiting from the aggressive expansion strategy in the early stage,have achieved fruitful results on the surface,but in fact,they are pregnant with huge financial risks.Once the economy declines,the financial crisis will be triggered.HNA’s global M&A expansion strategy has been widely questioned since 2004.Until 2017,due to a series of financial problems,people have drawn attention to its financial crisis.At the same time,HNA Group’s main business is civil aviation,which is closely related to people’s lives.If the financial crisis of HNA Group continues to expand,it will have a serious impact on the country’s main aviation industry.Therefore,studying the financial risks of cross-border MERGERS and acquisitions of HNA Group has strong timeliness and practical significance.The theme of this paper is to analyze the financial risks of HNA Group in crossborder M&A.First of all,this paper introduces the research background and significance in detail,and summarizes the literature of domestic and foreign scholars on the motivation and financial risks of cross-border M&A.Secondly,it explains the related contents of cross-border M&A and its financial risks,and expounds the motivation theory,performance theory and foreign direct investment theory of M&A.Next,from the perspective of cases,this paper introduces HNA Group and the case of HNA Group’s merger and acquisition of Ingram Micro International,deeply discusses the pricing risk,financing risk,payment risk and integration risk of HNA Group in cross-border merger and acquisition,and analyzes the causes and consequences of financial risks in crossborder merger and acquisition.This paper analyzes the control measures taken by HNA Group in the face of these financial risks and their effects.Finally,the conclusion of the case and the inspiration for related enterprises to carry out cross-border mergers and acquisitions.In this paper,the theoretical overview and case practice for effective combination of analysis,the HNA Group merger of Ingram Micro International this typical case of the financial risk of the existing research and analysis,and draw the corresponding conclusions and enlightenment.The enlightenment part of the case mainly includes the following seven aspects: First,reasonable evaluation of enterprise value;Two is to carefully investigate the target enterprise;Third,comprehensive strategic contraction;The fourth is to return to the aviation industry;Fifth,improve resource coordination;Six is to establish the financial early warning system;Seventh,strengthen the internal control system.This paper aims to provide some reference value for the immature cross-border M&A activities of Chinese enterprises,so that M&A enterprises can effectively identify and prevent financial risks in the process of cross-border M&A,so as to improve the probability of success of M&A activities.The relevant enlightenment from this paper hopes to make enterprises that intend to conduct cross-border mergers and acquisitions realize the financial risks that must be paid attention to in the process of business expansion,so as to better avoid risks and achieve the expected goals of mergers and acquisitions.