Necessary Conditions & Critical Control Points For Chinese Enterprises To Raise The Success Rate Of Cross-border M&A

In the past 100 years, there have been five times of the global wave of merger and acquisition. Since the 1990s, with the pace of global economic integration accelerating, the international market opening has unprecedented improved, and competition among enterprises has become more intense. Large international enterprises tentacles extend from domestic to foreign countries and for the world market. The powerful alliances between enterprises and the strategic purpose of this merger are the ideal path to achieve the aim. To Chinese enterprises in the context of globalization, transnational merger and acquisition is the only way. Facing Chinese enterprises overseas merger and acquisition's practice, academia in China has been rising craze on the study of Chinese enterprises' Cross-border M&A.Cross-border M&A of Chinese enterprises as a whole is still in its initial stage. Apart from in the technical, managerial, financial and other aspects, having gap with the developed countries enterprises, Chinese enterprises are also not suited to the environment of international competition, risk prevention awareness not strong. Worse still, the enterprises are not good at dealing with economic interests and the social interests. Most Chinese enterprises are facing the common problem mentioned above. To prepare from the strategic perspective, especially strengthen the integration according to environmental change, avoid risks, timely adjust tactics, Chinese enterprises greatly improve the success rate of cross-border M&A.This paper is on the background of the development of Chinese enterprises' Cross-border M&A, analyzing the motives of Chinese enterprises Cross-border M&A and Comparing the successful cases with the failure ones of Chinese enterprises Cross-border M&A. This paper explores the necessary conditions when Chinese enterprises dealing with Cross-border M&A and further point out the existing problems from the process of M&A, giving the solutions to the problems. Introduction part of the thesis is about the topic's background and significance, the main structure and layout of the proposed thesis and research methods. Summary of theoretical research on transnational merger and acquisition at home and abroad provide the base theoretically for the study. This paper analyses the background of Chinese enterprises transnational M&A, the development in various stages and the characteristics and the motives of Chinese enterprises cross-border M&A; researches the necessary conditions of Chinese enterprises transnational merger successfully, focusing on the four aspects: making cross-border M&A strategy, making preparations, choosing financing ways, and strengthening the integration; proposes the bottlenecks blocking the success of Cross-border M&A. Institutional factors constraints, the intermediary's vacancy, and facing the challenge of cultural integration after M&A, as well as outside interference from political factors are affecting the raise of the success rate of cross-border M&A; from the corporate and government aspect, in the strategic and operational ways, raises how to control key points to achieve the successful Cross-border M&A. Controlling the key points, overcoming the bottlenecks, gaining the necessary conditions, Chinese enterprises can greatly improve the success rate of cross-border M&A.