Case Study Of M&A Financial Risk

In 21st century, according to the development of China's macro-economy and the enhancement of the enterprises' core competitions, more and more Chinese enterprises began to carry out exterior-grow instead of traditional inner-grow. In the history of the world's M&A, many enterprises was failed because they neglected the importance of the financial risk management. The M&A financial risk has become the focus of widespread attention. The definition, the sources and types of the M & A financial risks are discussed in this paper, and a new perspective was approved; the identification of M & A financial risk was analyzed; a new framework of M & A financial risk management was proposed and all types of financial risk management enterprises' M&A was carried out a detailed exposition.In December, 2004, Lenovo announced the merger and acquisition IBM personal computing Department. Through the interview of many executives, proposed by the application of theoretical and analytical framework in this paper, the Lenovo deal case study was conducted deeply. The clear investment strategy and reasonable motive is the foundation of the success of M&A; the study was comprehensively and deeply, the assessment of the value of target companies was careful; with the help of high-quality professional institutions, a detailed and reliable financing in the programme was formulated; the integration risk management after the merger was conducted with an open mind. The enterprises must improve their profitability through the enhancement of their innovation ability; a well-developed capital markets is very helpful of the improvement of the acquisition financing instruments; the national enterprises' Cross-Border M&A is supported by the government. Under the new situation of the loan crisis in the United Stats and China's economic restructuring, China's M&A should advance with the times, "China to create" will be achieved from "Made in China". It will attract many Chinese enterprises to practice their Cross-Border M&A. These suggestions will be helpful for those enterprises who want to have Cross-Border M&A.