The Analysis And Countermeasure Of Financial Risk In Overseas M&A

Since entering the 1990 s,the economic ties between countries around the world have been strengthened,and the world economy is developing in the direction of globalization and integration.With the mutual penetration of national economies,more and more companies began to take the road of international development,cross-border capital flows more and more active,overseas mergers and acquisitions has become the dominant force of cross-border capital flows.China's enterprises are active elements of overseas mergers and acquisitions,but the success rate of overseas mergers and acquisitions is not high,which one of the financial risks can not be ignored.It is beneficial for enterprises to prevent and control financial risks effectively and improve their core competitiveness in M&A activities.It is also conducive to safeguarding the economic security of our country,which is useful to realize the strategic goal of B&R.According to the research on the related literature,it is found that the domestic research on the financial risk of overseas M&A is mostly normative research and less quantitative research.Compared with the similar research in the past,this paper focuses on the comprehensive analysis of financial risk of overseas M&A,and uses the method of qualitative analysis and quantitative analysis to enrich the evaluation system of financial risk of overseas M&A in China.Research methods are normative research and case analysis.Based on the M&A process,the financial risk is divided into the target enterprise pricing risk at the strategic decision stage,the fund raising and payment risk of the M&A stage and the financial integration risk of the M&A stage.Using the theory of enterprise resource,information asymmetry and risk management,this paper identifies and analyzes financial risk of overseas M & A of Chinese enterpriseschooses.This paper chooses Yanzhou Coal Mining M & A Australia Felix company case analysis,which is the largest amount of M&A in China's M&A case in 2009,and its' all the funds raised from the bank loans,its' payment is only cash payments,the case is very representative.On the one hand,based on the M&A process,the financial risk of Yanzhou Coal Mining Felix case is analyzed in detail.The results show that the financial risk of M&A is bigger,especially the raising and payment of funds is large.On the other hand,The modified Z-value modelanalyzes the overall financial risk and finds that the overall financial risk level of Yanzhou Coal is high.Through the detailed study of this case,this paper puts forward the appropriate countermeasures from the angle of government,intermediary and enterprise respectively,including: the government should give policy support,improve the relevant laws and regulations,and build a risk control mechanism;intermediary institutions should do due diligence well and pay attention to the construction of talent;enterprises should choose the right target enterprise value valuation method,expand the financing channels,choose a flexible way of payment and integration to establish a unified financial management system.These preventive measures will help our enterprises to effectively control the financial risks of M&A activities,so as to successfully achieve the strategic objectives of overseas M&A.