Study Of The Risk Of Cross-border Mergers And Acquisitions Of Chinese Enterprises

Since China has entered into WTO in 2001, Chinese enterprises began to take M&A abroad frequently in the context of the rapid pace of globalization and globally transitional M&A. In order to seek broader development space and abundant resources, our enterprises begin to implement transitional M&A strategy positively to meet challenges. Our sale amount of auto industry exceeded American's at the very first time in 2009, ranking first worldwide. The fast development and prosperity of our auto industry is one element of our constant transitional M&A in the auto filed. Meanwhile, the detriment of financial crisis provides an appropriate opportunity for our auto enterprises to bottom-fish foreign auto ones. However, opportunity and challenge always coexist in the same. We can expand markets and take resources promptly through transitional M&A, and should meet challenges of the target enterprise selection risk, M&A negotiation risk, financing risk, political and legal risk, as well as integration risk meanwhile. To increase success rate of transitional M&A, we should prepare for the identification, measurement and prevention of the M&A risk during its period of preparation, deal and final integration. According to their development status quo, our auto enterprises should learn both success and failure experience from others, building rational and effective risk prevention mechanisms, finally increase mission success rate based on the comprehensive understanding of the characteristics of international auto M&A development.This essay which has 7 chapters is a study on the risk and risk prevention of our auto industry's transitional M&A. The first chapter explains the study background and meaning, and defines transitional M&A and M&A risk. The second one explains some principles of transitional M&A and its risk, and M&A risk access and analysis, and expresses the domestic and abroad study of the status quo of M&A risk. Meanwhile, I find that domestic study on this issue lacks deep quantitative analysis. The third part is analysis on the status quo, traits, and the main problems of our auto industry's transitional M&A. Next chapter analyses the risk resources from three different periods: pre-M&A period, M&A period, and after M&A period. The fifth sector is how to make the quantitative analysis of risk access of M&A with fuzzy comprehensive evaluation method and model of grey relational analysis. The following chapter gives corresponding risk prevention measures to the status quo of our auto industry, such as the lack of risk prevention intuition, non sufficient transitional M&A experience and imperfection of risk prevention mechanisms. The very last chapter summarizes the problems already discussed, and gives some suggestions to our auto industry's transitional M&A.