Research On Financial Risks In Cross-border Strategic Mergers And Acquisitions Of Enterprises

Under the backdrop of rapid economic development globally and domestically,competitions and markets are no longer confined to specific locations.As the competitive enterprises urgently call for more resources and marketplaces,M&A acts an effective measure for meeting corporate demands.Therefore,more and more Chinese enterprises are embracing M&A as part of their development strategies,and the more powerful ones have been focusing on the overseas areas for cross-border mergers and acquisitions.Nevertheless,the fact that there is a late start of cross-border mergers and acquisitions in China means many enterprises are inexperienced that they ignored the financial risks and risk management,resulting in the failures to merge or acquire.Based on the strategic value and impact of mergers and acquisitions,this paper takes Bohai Capitalas M&A Avolon the research object to probe into the financial risks associated with the cross-border strategic mergers and acquisitions,along with suggestions for risk management.This paper firstly introduces the research background and significance of financial risk management of transnational strategic M&A.Secondly,this paper expounds the relevant theories of strategic M&A from four aspects: the meaning,classification,motivation and enterprise strategy of strategic M&A.And introduce the financial risk and management theory of M&A.Then,the strategic value and influence of the acquisition of Avolon were analyzed through the study of Bohai Capital's acquisition of the Avolon case process.Based on the qualitative analysis,comparative analysis and financial ratio,this paper analyzes the five financial risks faced by Bohai Capital.Finally,based on the Bohai Capital M&A case,financial risk management Suggestions to the enterprise strategy of multinational M&A,blend in some strategic thinking and related theory to the valuation of mergers and acquisitions,financing,payment,integration,exchange rate and interest rate risk management ideas,effectively reduce the cross-border M&A financial risk management Suggestions.In order to improve the operational risk prevention measures of cross-border M&A in China,some ideas are provided.