Research On Risk Assessment Of The Cross-border Mergers&acquisitions Loads Of Commercial Banks In China

With the acceleration of economic globalization, Chinese enterprises "going out" pace alsobecame more and more quickly. Cross-border M&A can help the enterprise to a global resourceintegration, industrial upgrading and entering the international market more quickly, but it needs hugenumber of money. The issue of “Guidelines on Risk Management of M&A loans of Commercial Banks”provides a new way for the acquisition of Chinese enterprises, promotes China’s industrial integration, andpromotes the economic development of our country. As a new kind of high risk loan of commercial banks,the M&A loans’risk, the risk assessment and management way have many differences with ordinaryloans’. The transnational M&A risk assessment and prevention is an important task of the dailymanagement of the commercial banks as well as the normal one. The research on manufacturingtransnational M&A loan risk, not only can help commercial banks improve risk management level andoperation ability, promote the merger and acquisition loan theory in our country’s further development, butalso can provide a reference for our Chinese manufacturing enterprises overseas acquisitions.This thesis took the perspective of “Guidelines on Risk Management of M&A loans ofCommercial Banks” to research transnational M&A loan risk evaluation. Firstly, this thesis researches theconcept, characteristics, constraints of M&A loan normatively, and focuses on the differences betweenM&A loan, normal loan and LBO loans; secondly, it analysis the special risks for M&A loan, and theconcept of risk evaluation in China’s commercial banks and evaluation method are introduced in detail;thirdly, combined with the status quo and characteristics of China’s manufacturing industry, manufacturingindustry of our country of transnational merger and acquisition feasibility and necessity are analyzed;thirdly, according to the " commercial bank merger loan risk management guidelines " to construct theevaluation index system of risk, on this basis, using the analytic hierarchy process and risk assessment toestablish transnational merger and acquisition loans fuzzy comprehensive evaluation model; finally, itselects a representative M&A case from the current cases, through the in-depth analysis and furtherverification of the risk evaluation model to come to the conclusion, combine theory with practice. The innovation of this paper lies in the detailed comparative analysis between M&A loan,normal loans and foreign LBO, and it shows the characteristics of M&A loan. Then it adds cross-borderM&A factor into the merger loan risk evaluation index system, which makes the index system morepractical and pertinence. The establishment of transnational M&A loan risk evaluation model whichcombines the actual situation of manufacturing enterprises not only provides reference for Chinesecommercial banks to provide loans to manufacturing enterprises in cross-border mergers and acquisitions,but also enriches the study of this new topic in the M&A loans risk.