Research On Risk Assessment And Control Of HNA Technology’s Cross-border Leveraged Acquisition Of IMI

With the continuous promotion of China’s policies,China’s cross-border M&A has entered a prosperous stage with an irresistible trend.Chinese enterprises have used cross-border mergers and acquisitions to expand their operations and acquire technological assets to achieve rapid growth.High returns are often accompanied by high risks.While enterprises are growing rapidly,they are also facing merger and acquisition risks.Changes in the selection of transaction objects,sources of funds,payment methods and integrated operating environment have brought uncertainties to cross-border mergers and acquisitions.At the same time,the increasingly perfect and powerful economic system and capital market have diversified financial instruments,and the highly leveraged cross-border M&A has emerged as the times require.The way of financing with high debt has added more hidden dangers to cross-border M&A,which is already full of risks.From the peak of the number and amount of cross-border M&A transactions in China in 2016 to the gradual stabilization of the number of M&A in 2020,many companies use various means of payment for M&A,scrambling to step into the craze of cross-border M&A.Therefore,studying the risks of cross-border leveraged mergers and acquisitions can provide a more comprehensive understanding of the risks of mergers and acquisitions.With the regulation of financial markets,the merger and acquisition market has gradually become rational,and how to control the risks has become particularly important for enterprises.HNA Group has many years of experience in merger and acquisition.The case of HNA Technology’s high premium leveraged merger and acquisition of IMI is a very typical multinational leveraged merger and acquisition case.Therefore,this thesis chooses HNA Technology’s merger and acquisition case as a case.Taking the logic of risk management process as the main line of the article,namely risk identification and analysis,risk assessment,control and prevention suggestions.Firstly,the thesis uses the risk process analysis method to divide the M&A process into three stages to identify and analyze the risk factors existing in the M&A,and strive to find out the causes and effects of different risk factors.Then,the thesis uses the risk matrix method to combine quantitative and qualitative methods such as fuzzy comprehensive evaluation method and analytic hierarchy process to evaluate different risk factors,and obtains the importance of different risks and the overall risk level.Then,based on the evaluation results,the thesis analyzes the control measures for different risk factors and puts forward corresponding suggestions for the deficiencies of risk control after integration.This thesis mainly has the following conclusions: First,there are six different risk factors in the process of HNA Technology’s cross-border leveraged merger and acquisition of ingram micro International,namely,selection risk,pricing risk,financing risk,payment risk,integration risk and environmental risk.According to the evaluation results,integration risk and environmental risk have the highest risk importance weight and should be paid attention to.Second,the overall risk assessment result of this case is medium.Combined with the risk control measures of HNA Technology’s merger and acquisition,this thesis believes that HNA Technology has better control of the risk before the completion of the merger and acquisition,and has certain reference significance.Although HNA Technology has also adopted a series of risk control measures according to the established strategy after the completion of the merger and acquisition,the control effect is unsatisfactory due to the deviation of its own management strategy direction and the unpredictable changes in the external environment.Third,in view of the lack of integration in the late stage of merger and acquisition,this thesis proposes to prevent or mitigate the subsequent risks to a certain extent from the perspectives of capital source,cultural exchange and internal accounting management.