Research On Automobile Industry Cross Border M&A Of Financial Risks

Under the influence of economic globalization,cross border M&A has become a way of rapid expansion for enterprises.Automobile companies is in a capital intensive industry.After the furious market competition,it has become the industry of overcapacity and profit downturn.Cross border M&A develop the new way of achieving synergistic effect and corporate goal.Our automobile's development situation lag behind the advanced level in the world.Our automobile companies hope to get more resources through cross border M&A.But the transnational M&A of our enterprise is still in its infancy,it will encounter unpredictable risks,especially financial risk through out the whole progress of M&A.How to prepare for planning at the early stage of the merger to select the appropriate target enterprise evaluation,what kind of financing and payment,how to carry out effective integration of M&A deals.The article studies SAIC comparing with GREELY about automobile industry for the financial risk of transnational M&A,finding the reasons for the failure of SAIC M&A,showing the shortage of experiences in cross-border M&A in our country.In this paper,we can see disadvantage experience of our enterprise M&A,it can provide instructive advice of us.The research mainly has five parts: the first part introduces the background and significance.It indicates the basic thoughts and framework.The second part introduces the financial risk of the cross-border M&A.It summarizes theories related to cross-border first,then makes a study of the financial risk type,showing the theoretical basis and research contents,bringing out the following cases.The third part introduces the case.First of all,this article selects the SSANG YONG case to make a brief introduction of SAIC M&A.The second case is from VOLVO,GEELY group.It is selected at this article to make a brief introduction.The fourth part is for M&A financial risk analysis and comparison.It based on the failed merger of SAIC and the succeeded merger of GEELY,finding the four elements of merger failure of SAIC.Simultaneously,it analyses the merger influence of financial statement,providing statistic attachment for comparing financial statement.The fifth part is conclusion and suggestion.According to the four parts before,giving enterprises the suggestion in order to make M&A successfully.Comparison case study is used to make research of cross-border M&A for its financial risks in automobile industry.