The Financial Analysis Of Chinese Enterprises On Cross-Border Merger And Acquisition

In the world within the cross-border M & A wave swept again, the speed and scale of themovement of international capital have been expanding. More and more foreign directinvestment used the form of mergers and acquisitions, cross-border M & A graduallyreplace green investment into the world's most important investment. In recent years,foreign-funded enterprises enter in China's large market, setting off a wave of foreign M &A our businesses, their focus is investment holding joint ventures, Chinese-foreigncooperative enterprises or direct purchase of China's state-owned enterprises. FollowingChina's accession to the WTO, the domestic market will open up further, all investmentbarriers have been gradually removed, coupled with our global strategy of transnationalcorporations in the special "locational advantages," China will become the focus of TNCsglobal strategic adjustment. In other words the multinational corporation has the possibility toenlarge to China's investment, and investment is more scale, systematization. But we shoulddeal with the risk which brings for our country enterprise, evades its point, takes its strongpoint. The article introduced how to choose the method of M &A from the accountingangle,comparing the payment of M & A ,analyzing the financial condition of our enterprise inthe cross-border M&A with the recent years` examples. At first,the article researched thefinancial factors and the pro and con aspects effects to our country`s economy. At lastthe article discussed the financial risk and the exchange rate risk .