Research Of Chinese Enterprises Overseas Mergers And Acquisitions’ Financial Risks Which Is Based On The Process Analysis

The economy of the U.S. and Europe remain in the doldrums, Chinese enterprises get a rareopportunity in overseas mergers and acquisitions. But there are many uncertains when goingoverseas, Chinese enterprises cannot neglect the financial risks because of its particularity andcomplexity. Whether succeed in evading the financial risks in the preparatory phase have a directimpact on mergers’ success or failure. The progress of the merger and acquisition activitiesgenerally can be divided into three phases: preparatory phase; execution phase; integration phase,there can be certain risks in each phase. This paper mainly analysis the specific financial risk ineach phase, combining with the relevant case studies of three phases, exploring correspondingstrategies Chinese enterprises should adopt.The paper is divided into five parts:Chapter1is an introduction. This part introduce the background and the theory significanceand practice significance of the research; combing and analysis the research on overseas mergersand acquisitions and overseas mergers and acquisitions’ financial risks at home and abroad; onthe basis of scholar’s research results, point out the shortcomings of existing studies, and cleardirection for further research.Chapter2analysis on the relevant theories of mergers and acquisitions and overseasmergers and acquisitions. Firstly, the paper definite the connotation of the mergers andacquisitions, introduce the process of mergers and acquisitions, development history and statusof mergers and acquisitions; and then introduce the related issues of overseas mergers andacquisitions, such as concept definition, agent, risk analysis, the influence of the internationalfinancial crisis.Chapter3analysis causes of financial risk in the process of Chinese enterprises’ overseasmergers and acquisitions. on one hand,the paper expound the particular financial risk factors in each three phases, on the other hand the paper especially take the merger and acquisition of PingAn Insurance and Fortis, Lenovo group and IBM PC business, SAIC and Ssangyong as examples,summing up experience from practice.Chapter4discuss the control of financial risk.Chapter5summarize the main points of the paper, and imply the research limitations andsome problem needed to research and explore in the future.