The Study Of Financial Risk In The Case Of The Acquisition And Merge Of Wanda And AMC

Along with the increase of Chinese enterprises' cross-border mergers and acquisitions experiences and continuous promotion of global economic integration,enterprises in Chinese mainland continued to be active in overseas mergers and acquisitions aspect.We will see that the turnover of transactions and the amount of overseas mergers and acquisitions will continue to grow.As a major foreign investment method,direct investment has a growing trend in the world.After China get the accession in WTO,Cross-border M & A has become the main way which Chinese enterprises head to the world.In 2015,Chinese enterprises maintained a trend to carry out overseas mergers and acquisitions,and strategic investors tend to perform epitaxial growth strategy.Along with the situation that chasing technology and brand to bring it back to China,large multinational companies led by China on the world stage play the more important role.But at the same time,the risk of cross-border mergers and acquisitions which Chinese enterprises are facing conclude political risk,cultural risk,legal risk,financial risk,etc,among which the financial risk that throughout the entire M & A process,is the important factor in the success of mergers and acquisitions.Through theoretical research methods and case combination,this article made a study in the causes and categories and characteristics of financial risk which Chinese Enterprises are facing in Transnational M & A.We choose the M & A case of Wanda and AMC which made a landmark in the history of Chinese enterprises transnational mergers and acquisitions,and summarized the success of financial risk management in Wanda M & A process,and made quantitative analysis of the financial risk in the acquisitions process which contained DFL analysis method,financial statement analysis method,financial indicators analysis method and the Z value analysis model.We also made a comparison with the responses of financial risk in other failure case of cross-border M & A,which will help serve Chinese enterprises financial risk prevention measures which should be taken in cross-border mergers and acquisitions.To avoid financial risk in cross-border mergers and acquisitions,the key is not only that choosing the right acquisition targets by considering their own situation and accurately grasp the financial situation of the target company,but also that the enterprise need to own certain capital strength.Paying equal attention and adopting right methods and strategies in the process of evaluating target company and financing payment and merger integration,which can improve the success rate of cross-border mergers and acquisitions.