Research On The Risk Identification And Prevention Of Overseas M&A Of Chinese Engineering Machinery Enterprises

In the context of economic globalization,more and more Chinese enterprises consider overseas M&A as a mean to open up the international market and enhance the core competitiveness of enterprises.Recent years,under the policy of "going out"strategy of the country,Chinese engineering machinery enterprises have accelerated the pace of FDI.The subprime mortgage crisis in 2008 and the European debt crisis in 2010 provide Chinese engineering machinery enterprises an opportunity to M&A overseas.From now on Chinese engineering machinery enterprises started a large-scale overseas M&A:At this point,overseas M&A have gradually replaced the green land investment as an important way of FDI.Overseas M&A,not only to helps Chinese engineering machinery enterprises to obtain a large number of advanced technology and talents,but also win the fame.However,compared with the engineering machinery enterprises in developed countries,Chinese engineering machinery enterprises started overseas M&A lately,lacking of experience and comprehensive understanding of overseas M&A,resulted in hard process of overseas M&A.Therefore,the research on the risk of overseas M&A helps to improve the risk awareness and risk prevention ability of Chinese engineering machinery enterprises and promote the implement of overseas M&A smoothly.This paper first analyzes the risk of overseas M&A,and divides the risk of overseas M&A into systemic risk and non-systematic risk according to the nature of risk.Non-systematic risk is classified by M&A process,including the risk of the M&A decision stage,the risk of the M&A implementation stage,and the risk of the M&A integration stage.This chapter also elaborates the methods and basic principles of overseas M&A risk identification.Secondly,according to the risk classification criteria above paper summarizes the current situation of the overseas M&A risk of Chinese engineering machinery industry.Thirdly identified the risks of the case that Sany acquired Putzmeister according to the common risk of the engineering machinery industry,then summarize the risk prevention measures in the process of Sany.The end of the article is the risk prevention measures of overseas M&A referring to the case.