Exploration Of The Reasons For The Loss Of Control Of Cross-border M&A Targets

In the economic market,reasonable mergers and acquisitions can expand the scale of enterprises,occupy a larger market share,so as to bring certain economic benefits to enterprises.In recent years,cross-border merger and acquisition has become the "new favorite" of the company's strategic choice,bringing more diversified choices for the development of the enterprise.However,with the rise of cross-border mergers and acquisitions,cross-border mergers and acquisitions did not achieve the optimal effect,the underlying assets out of control phenomenon occurred repeatedly.Lanfeng biochemical is a listed enterprise mainly engaged in pesticide and chemical products.In recent years,due to the influence of relevant national policies and the sluggish development of the industry,its business performance has been greatly decreased.In order to avoid losses and expand the development of the enterprise,the company acquired ark pharmaceutical in 2015.However,lanfeng biochemical lost control of the target company in the follow-up management,which brought serious losses to itself.The case of lanfeng biochemical's cross-border acquisition of ark pharmaceutical is a typical failure case.In this transaction,there are not only common factors that lead to the phenomenon of assets out of control,such as blindly following the trend,lack of prior analysis of the underlying enterprise,imperfect institutional policies,etc.,but also hot spots in the market,such as the effect of the effectiveness of internal control on the underlying asset.To explore the background,scheme and reasons for the out-of-control assets of lanfeng biochemical cross-border mergers and acquisitions is more conducive to understanding the problems in the merger and acquisition market,helping enterprises to avoid the occurrence of out-of-control assets as far as possible,and reducing the probability of merger and acquisition failure.From the perspective of cross-border merger and acquisition,this paper selects typical cases of assets out of control won by lanfeng biochemical merger and acquisition for systematic analysis.The methods of case analysis,literature research,combined with related theory,acquisition scheme of Berkeley biochemical made a more detailed description,and aims at Berkeley biological assets out of control performance of cross-border mergers and acquisitions,systematically,from the Angleof enterprise performance,management and internal control,the cause of the underlying asset is out of control makes in-depth discussion,put forward more rationalization suggestion for the cause of out of control.Through the analysis of the reasons for the loss of control of the underlying assets,we hope to provide some help to the enterprises that intend to carry out cross-border mergers and acquisitions,so as to avoid the loss caused by the loss of control of the underlying assets.