Reseach On Financial Risk And Control Of Cross-Border Merger And Acquisition Of Motorola Mobility By Lenovo Group

With the development of economic globalization,there are more and more competitors in the world market,and enterprises are facing greater survival pressure and challenges.Chinese enterprises began to explore cross-border mergers and acquisitions in the 1980 s.Cross-border m&a is one of the important ways for Chinese enterprises to expand market share and enhance international influence.However,transnational mergers and acquisitions in China starts late,related the objective factors of theory system is not yet mature,while the majority of Chinese enterprises have no experience in cross-border m&a,cannot avoid the risk of mergers and acquisitions in cross-border m&a activities,the financial risk is the most prominent,therefore in the process of mergers and acquisitions of financial risk analysis and control is very important.Based on such economic environment and the development characteristics of China's smart phone industry,this paper takes lenovo group as a case study and focuses on the smart phone business to analyze the financial risks in the process of cross-border mergers and acquisitions,which can help enterprises to reduce financial risks,achieve synergistic effect of mergers and acquisitions,and improve the success rate of mergers and acquisitions.The structure of this study is as follows: the analysis method combining literature and cases is adopted to reflect the financial risks faced by enterprises in transnational mergers and acquisitions and related control studies.This paper starts from the research background,clarifies the purpose and significance of the research,sorts out the domestic and foreign literature,and introduces the research ideas and main contents.Then on the concept,related theory and core analysis and case enterprise,lenovo group for cross-border m&a MOTOROLA's background,motivation,process and each link of financial risk causes analysis,and of lenovo group in the transnational merger and acquisition to take measures to control the financial risk analysis,summarizes the advantages and disadvantages in the process of control.In the end,this paper summarizes the practice of controlling financial risks in cross-border mergers and acquisitions,which provides a reference for lenovo group to control financial risks in future cross-border mergers and acquisitions,and summarizes countermeasures for related enterprises to prevent financial risks in cross-border mergers and acquisitions.Based on the analysis of theories and cases,this study comes to the following conclusions :(1)through literature review and case analysis,it is believed that lenovo group faces the risk of target enterprise selection and target enterprise valuation in the preparation process of cross-border m&a;The integration process faces integration risks.(2)to analyze lenovo group control measures and analysis in preparation for the acquisition of MOTOROLA mobile insufficient prophase investigation,premium valuation,mergers and acquisitions in the implementation stage with the method of mixed pay,combined with the internal and external financing means to a certain extent,reduce the financial risk,but in the consolidation stage,lack of effective integration of target enterprise financial management,etc.(3)in view of the deficiencies of lenovo group's control in the financial risk control of cross-border mergers and acquisitions,this paper proposes corresponding improvement measures and means to provide some enlightenment for lenovo group's future mergers and acquisitions in the field of smart phone business,and provide reference for other enterprises in China's smart phone industry to carry out cross-border mergers and acquisitions.