Study On Financial Risk Analysis And Prevention Of Enterprise Cross-border Mergers And Acquisitions

Oil is known as " The blood of modern industry ", which is not only a very important strategic resource in industry, but also has a wide range of applications in modern economic and development.In modern society,the economic develop more and more quickly,the demand for oil resources is rising fast.With the rapid development of economy and the continuous advancement of technology,the development and growth of enterprises are not confined to its own accumulation, mergers and acquisitions between companies are not only focused on the domestic market. To enable enterprises to develop more rapidly,access to resources and markets,they need the affect of the mergers and acquisitions with other establishments.And in order to get the most advanced production technology and management experience, enterprises should have a global view.Transnational mergers and acquisitions will undoubtedly become the best way of gaining resources and technology, developing overseas markets rapidly. As a pillar industry of the national oil industry must enhance its competitiveness and development in order to survive in the world market,cross-border M&A is an important way for Chinese oil company resources to expand the market for the purpose of "Going out" strategy.Whereas almost on the back of all opportunities and benefits lie potential risks and crisis, anything that goes wrong in the aspects of mergers and acquisitions will lay hidden danger for successful mergers and acquisitions.However,behind almost all of the opportunities and benefits of all potential risks associated with the crisis,nothing went wrong in all aspects of mergers and acquisitions are successful mergers and acquisitions will lay hidden. However,behind the surface of overseas mergers and acquisitions there is a variety of risk possibilities,companies will certainly not give up the good opportunities for development of future business or be indifferent and standing still.More over,they choose to seek identification,measurement,prevention and control methods and strategies of M&A financial risk actively,and this become transnational direct investment strategy important content.Cross-border mergers and acquisitions of financial risks through various stages to predict the existence,assessment and analysis to identify effective prevention strategies,solutions and response measures is a top priority to ensure the smooth progress of the merger. Impact of cross-border mergers and acquisitions in the success of the many risk factors,the financial risks can be quantified and used as an assessment becomes even more obvious and intuitive.In addition,due to the amount of funds involved in cross-border mergers and acquisitions in the oil industry was relatively large, and thus its financial risk is able to directly determine the success or failure of mergers and acquisitions, and its importance is obvious.The financial risks in the Cross-border mergers and acquisitions typically include:pricing risk decision prior to the implementation of the financing, payment and financial risk, as well as post-merger financial integration risks. Due to the special nature of the Chinese oil industry and its position in the course of cross-border mergers and acquisitions,financial risks faced by the success of the merger itself,the impact is enormous.On the basis of previous studies on cross-border M&A theoretical study on the financial risk of Chinese oil industry-related content analysis,put forward their own understanding,combined with the typical cases-CNOOC’s acquisition of Nexen,analyzed from the merger motivation to find the risks at the back of this merger.And related theory to the case,propose cross-border M&A risk prevention measures and suggestions from both objective and subjective aspect,finally make recommendations to prevent the risk of transnational mergers and acquisitions.