Research On Control Of Financial Risk About Overseas M&A Of Enterprises

Overseas M&A is of great significance to Chinese companies. It is an important way to help companies develop rapidly and allocate global resources effectively. It will encourage enterprise to innovate technology and system. It will strengthen the companies’ competition in global market. However, Chinese enterprises face huge risk during the process of overseas M&A. Financial risk is related with every step of overseas M&A and occupies a very important position. Therefore, this paper focuses on the study of overseas M&A financial risk control.This paper is divided into two parts: the first part is the case presentation, including the introduction, case background and case review; the second part is case analysis, and the case study will base on the overseas M&A financial control theory.The findings of this case study are as follows: First, Shuanghui was too optimistic to the synergistic effect between him and SFD, which resulted the pricing risk. Second, the huge debt may hinder its development and led high asset-liability ratio. Third, Shuanghui did not adopt effective means to control exchange rate risk. Forth, the following measure to control debt risk was not good enough. Finally, this paper puts related suggestions for the above problems. First,improve the awareness of controlling pricing risk. Second, extend financing channel. Third, consider the influence of the method of payment in the future; Forth, control the speed of financial conformity.