Research On Changan's Acquisition Of Changan Suzuki's Financial Risks And Their Prevention

For a long time,manufacturing industry has been playing an important role in China’s economic development.In this century,with the improvement of social living standard and the increasing per capita disposable income,the automobile,once a symbol of wealth,has gradually become a means of transportation in People’s Daily life.In the pillar industry of national economic development,automobile manufacturing industry has gradually become an indispensable member.In the outline of China’s 13th five-year plan,the automobile industry has been regarded as a crucial link in China’s economic development.As the top priority,the supply-side structural reform also focuses on improving the efficiency of industry and manufacturing.In this context,China’s automobile industry not only needs to optimize the industrial structure,but also needs to gradually enhance its core competitiveness in technological innovation and other aspects.The supply-side structural reform is to adjust the industrial structure,ensure the improvement of the supply quality,so that the supply can adapt to the fluctuating demand changes.Meanwhile,the socialist economic construction with Chinese characteristics requires all kinds of supply to folly meet the basic needs of the people,which is inseparable from the improvement of total factor productivity.The definition of "supply-side reform" was first put forward at the 11th meeting of the central leading group for financial and economic development.General secretary xi jinping stressed at the central economic work conference that the five major tasks of supply-side structural reform are to cut overcapacity,reduce inventory,deleverage,reduce costs and strengthen weak links.The concept of supply-side reform provides a new way of thinking for China’s economic development,and also points out the direction for various industries in dealing with risks and seizing opportunities.In the new era,mergers and acquisitions of Chinese enterprises have become the main body of mergers and acquisitions in various countries under the background of globalization.In the past two decades,the number of mergers and acquisitions in China has increased significantly.In China’s m&a market,there are 5,454 m&a transactions disclosed in 2019,with the total transaction amount reaching us$377.906 billion,over us $1 billion in 40 transactions,and nearly 400 cases exceeding us $100 million.Thus it can be seen that Chinese enterprises are increasingly influential in the world,and the Chinese m&a market is also gradually active.In this paper,by means of literature research,field survey method,case analysis and other research methods,changan suzuki to changan m&a financial risk prevention as the research object,on the supply side of the reform and merger and acquisition risk prevention based on relevant theories,Outlines the changan changan suzuki’s general process and its causes,analyzes the financial risk in m&a incentives and financial risk assessment,in view of the supply side reform under the b ackground of changan changan suzuki m&a financial risk prevention measures of analyzing the advantages and disadvantages.This paper is divided into the following six parts:The first part,introduction,briefly describes the background and significance of the research,summarizes the historical evolution of mergers and acquisitions,and introduces the framework,methods and innovations of the research.The second part defines the basic concepts of merger and acquisition and supply-side reform,and briefly describes the theoretical basis of merger and acquisition.It provides the conceptual definition and theoretical basis for the narration of the following article.The third part summarizes the basic situation of changan automobile and changan suzuki under the background of supply side,and gives a brief introduction to the merger plan and the motivation of changan automobile’s acquisition of changan suzuki.The fourth part,In-depth analysis of changan acquisition changan suzuki financial risk incentives,and quantitative analysis of changan acquisition changan suzuki financial risk assessmen.The fifth part expounds the measures to prevent the financial risk of chang ’an acquiring chang ’an suzuki,and evaluates the advantages and disadvantages of the measures as well as the impact of the supply-side reform.The sixth part,According to the research on the financial risk prevention of changan acquisition changan suzuki,the conclusion and enlightenment are drawn.The innovation of this paper is as follows:at present,there are many researches on mergers and acquisitions of Chinese enterprises,but there are few researches on the subject of mergers and acquisitions in the field of automobile manufacturing industry.At the same time,since China proposed the supply-side structural reform in 2015,there have been few researches on the m&a risks of Chinese automobile companies under this background.The cost paid for the acquisition is one yuan,and the particularity of the payment method can provide some reference for the subsequent low-cost acquisition of enterprises.The case of changan’s acquisition of changan suzuki,which was selected in this paper,took place in 2018,and its timeliness can be guaranteed.This acquisition is a joint venture brand owned by an independent brand,and both parties play an important role in the automobile industry,which also guarantees the typicality of the research object.By studying the case of changan’s acquisition of changan suzuki,the author hopes to propose corresponding measures to prevent the risk of enterprise acquisition in the field of automobile manufacturing industry,so as to contribute to the globalization development of Chinese automobile enterprises.