The Analysis On Financial Risk In Cross-border Mergers And Acquisitions For Chinese Enterprises

As there exits many financial risks and loopholes in the process of mergers and acquisitions,the success rate of cross-border M&A is low in the history.Due to the lack of experiences,the success rate of cross-border M&A of Chinese enterprises is even lower.Therefore,the researches on the financial risk and financial risk management measures of cross-border M&A are the major concerns of our country and the global enterprises and academics.This paper mainly studies the risk of the target value assessment,the financing risk,the payment risk,the integration risk and the exchange rate risk,during and after the overseas M&A process of Chinese companies.And this paper analyzes the specific manifestations and causes of these five financial risks,and explores the risk control methods for them.The main contributions of this paper are as follows.First,organizing the types and causes of financial risks of overseas M&A,which theoretical supports the case analysis.Second,taking the perspective of financial risk as the start,this paper analyzes the financial risk and the effectiveness of risk management measures in the case of Qingdao Haier M&A GEA.Third,horizontal comparative analysis of the payment methods and financing methods in the process of overseas M&A between Chinese and Western enterprises.Fourth,with a wealth support of data,this paper takes a deep analysis in the acquisition target selection and valuation,financing programs,payment methods and the scheme integration of the case,and evaluates the effectiveness of each risk management measures,and finally extracts the inspiration of risk management for our companies in overseas M&A process.The conclusions of this paper are as follows.Through the analysis of the case,this paper holds that Qingdao Haier has taken proper risk management measures to deal with the target pricing risk,the payment risk and the integration risk,but it did not take appropriate control measures to deal with exchange rate risk,and has the advantages and disadvantages in managing the financing risk.Through various aspects of risk managements and the analysis of their effectiveness,this paper recommends a series of risk control and prevention strategies.