Risk Analysis Of "Snake Swallowing Elephant" Cross-Border Mergers And Acquisitions Analysis

With the increasing uncertainties of the world economy and the rise of emerging countries,cross-border mergers and acquisitions have begun to appear "snake swallowing elephants".Traditional theories related to cross-border mergers and acquisitions have become inadequate.Related scholars have conducted in-depth research on the risks of traditional cross-border mergers and acquisitions.Then,what are the risks of "snake swallowing elephant" cross-border mergers and acquisitions?This article focuses on this core issue and conducts research.This paper selects a typical "snake swallowing elephant" cross-border M&A case-Geely’s acquisition of Volvo as the research object.It sorts out the related research done by academia through searching literature,and uses a comparative analysis method to compare traditional cross-border mergers and acquisitions with "snake swallowing elephants".The risk of “Snake Tunxiang” type of cross-border mergers and acquisitions was compared,and the specific risks faced by the “snake swallowing elephant” type of cross-border mergers and acquisitions were obtained.A case analysis method was used to conduct a detailed analysis of Geely’s merger with Volvo,and the problems encountered in Geely’s mergers and acquisitions The countermeasures and the effects of mergers and acquisitions are explained in detail.The study found that "snake swallowing elephant" cross-border mergers and acquisitions,compared with traditional cross-border mergers and acquisitions,in the early preparation stage due to the asymmetry of information caused greater decision-making risk,in the mid-term implementation stage will face huge costs due to high mergers and acquisitions Financing risks and payment risks will face numerous integration risks in the later stages of integration due to insufficient management capabilities of M&A companies.However,through case analysis,it is concluded that the “snake swallowing elephant”type of cross-border M&A is not undesirable,as long as the M&A company adapts to the changes in the internal and external environment,the timing of the M&A is appropriate,the appropriate target company is selected,and multiple financing methods and formulations are applied flexibly.With a scientific integration plan,emerging multinational companies can also successfully acquire well-known companies in developed countries.