Financial Risk Analysis Of Multinational Leverage M&A

Over the past decades,transnational mergers and acquisitions have rewritten the global corporate competition and pushed the world economy into the era of globalization.In the era of economic globalization,it has become an inevitable fact for Chinese enterprises to enter the world.Leveraged buyout,as a special financing method of cross-border M&A,effectively promotes the development process of cross-border M&A,but also increases the risk of cross-border M&A.Firstly,this paper summarizes the related theories of cross-border M&A and leveraged buyout,summarizes the domestic and foreign research on leveraged merger and acquisition,and focuses on analyzing the financial risk of leveraged buyout in cross-border M&A by analyzing the case of JCET Leveraged Buy-out SATS ChipPAC.JCET only invested 260 million US dollars to complete a total of 780 million US dollars of leveraged buyouts,and acquired 50.98%of the equity of the mergers and acquisitions,thus achieving control over the mergers and acquisitions.Through the analysis of the whole process of M&A,the financial situation before and after M&A,the paper summarizes the financial risks of this leveraged M&A,and summarizes the related issues,which has certain guiding significance for Chinese enterprises to use leveraged M&A to achieve cross-border M&A in the future.The main contribution of this paper is to analyze the financial risks in cross-border leveraged buyouts,which has practical guiding significance.It also gives a detailed analysis of the specific process of JCET's acquisition of SATS ChipPAC.By comparing the financial changes before and after leveraged buyouts,it reveals the financial risks and operational risks,and has a good reference significance for Chinese enterprises to use leveraged buyouts in overseas mergers and acquisitions.The insufficiency is due to the limited theoretical level,lack of practical experience in M&A,insufficient data collection and insufficient statistical analysis.The research on financial risk in transnational leveraged buyout is not comprehensive enough.The suggestions for the existing problems need to be further improved and supplemented.