Challenges Facing Cross-border Mergers And Acquisitions Of Chinese Enterprises And Countermeasures

When the Mergers and Acquisitions (M&A) market of the world become dim, on theopposite, Chinese companies embracing the M&A activities have expanded their businessabroad. For example, the Lenovo Group acquired the PC business unit of IBM, whichmakes Chinese enterprises more internationalize. However, the M&A activities are quitecomplex process and Chinese corporations lack the experience, hence some of the casesfailed.Firstly, the common motivations for M&A and influence of M&A have beendescribed. M&A in oversea market will face with difficulties and challenges, as how toorganize the procedure and how to integrate is quite complex. All these issues areintroduced and analyzed with illustration of cases in this paper.Secondly, the international acquisitions are a good method to expand the business indifferent countries. The paper reviews the history of Chinese corporations' M&A, currentsituations, and analyzes a Chinese case.Lastly, in terms of Chinese enterprise' M&A activities, the paper gives some advices,including how to plan the strategic integration, the main factors influence the internationalacquisitions, how to avoid the risks, and how to manage the merger.