The Research On The Identification And Prevention System To Financial Risk Of Cross-border M&A Of Chinese Manufacturing Enterprises

With the development of economic globalization, cross-border M & A became one of the most important ways to the development of enterprises. Chinese manufacturing enterprises to go abroad has become a trend.The way of Chinese manufacturing enterprises to enter the international market is changing new from the traditional green-field investments, such as cross-border M & A. While Chinese manufacturing enterprises going out, risk was often around. Because of the lack of risk prevention awareness and measures, many enterprises, which originally planned to get better development through cross-border M & A, encountered the financial risk at last. Looking at many cases, the financial risk which was caused by not accurate valuation of the goal enterprises, inappropriate ways of financing, or the failure of financial integration, was the common, when they were going out. How to understand the financial risk and how to take appropriate measures to avoid financial risk? It played a decisive role if Chinese manufacturing enterprises could achieve the desired results in cross-border M & A.The research object of this article was the identification and prevention system to financial risk during cross-border M & A of Chinese manufacturing enterprises. Based on the identification theory to financial risk during cross-border M & A, and the study of cross-border M & A status and sources of financial risk to Chinese manufacturing enterprises, this article identified and measured the financial risk during cross-border M & A of Chinese manufacturing enterprises. Through analysis of the financial risk during cross-border M & A of Chinese manufacturing enterprises, we know what the problems were in facing the cross-border M & A financial risk. Then the article built complete financial risk prevention system, including pricing and assessment risk to the goal enterprises in decision-making period, financing risk management in transactions period, and M & A financial integration risk in integration period. Finally, this article used a specific case of cross-border M & A of Chinese manufacturing enterprises to Clarified this financial risk prevention system. Therefore, it could obtain better Positive results.