Research On Financial Risks Of Cross-border M&A Of Chinese Enterprises

With the implementation of the strategy of going global and the growing strength of Chinese enterprises,more and more companies have joined the tide of mergers and acquisitions.The scale of overseas M&A transactions and the amount of transactions continue to refresh the historical record.However,there are not many successful mergers and acquisitions.According to relevant data,the success rate of overseas mergers and acquisitions by Chinese companies is only about 30%,and nearly 70% of the companies can't successfully complete M&As.This phenomenon is mainly attributed to the negligence or lack of experience of M&A companies in financial risk management.Therefore,the management of financial risks in the merger and acquisition process is particularly important.The article first introduces the research background and significance,and sorts out relevant research results of domestic and foreign scholars in the concept,causes,assessment and management of cross-border M&A financial risks.On this basis,the article elaborates on the connotation of cross-border M&A financial risk,and classifies the types of financial risks in the M&A process according to the M&A preparation phase,M&A implementation phase and M&A integration phase.This article believes that M&A preparation phase The financial risks mainly include investment decision risk and target company valuation risk.The financial risks in the implementation stage of mergers and acquisitions mainly include financing and payment risks.The financial risks in the merger and acquisition integration stage mainly include debt repayment risk and integration risk.Then,the paper introduces the motivation theory of mergers and acquisitions,the theory of economies of scale,the theory of synergy,and the efficiency theory,as well as the basic and dynamic theory of risk management.On the basis of theoretical support,this article takes the acquisition of Qingdao Haier on GEA as an analysis object,and first introduces the background of the case.Then qualitatively analyzes the financial risks in the M&A preparation phase,the implementation phase and the integration phase,and then uses the Z-value model,fuzzy mathematics and analytic hierarchy process,and leverage analysis to quantify the financial risk on this case.At the same time,it analyzes and evaluates the financial risk management measures taken by Qingdao Haier in the process of mergers and acquisitions,and puts forward suggestions for the financial risk management 0f Qingdao Haier during the later period of integration.Finally,on the basis of the case analysis,combined with the practice of cross-border mergers and acquisitions of Chinese enterprises in recent years,we can draw inspirations from our country's financial risk management in cross-border M&A activities.This article hopes to analyze the case of the acquisition of Qingdao Haier on GEA,which can play a certain degree of deepening the financial risk management theory of overseas M&A.At the same time,it reminds Chinese enterprises to strengthen their management awareness of cross-border M&A financial risks,in the process of practice,scientific and effective control measures should be taken in time to improve the success rate of Chinese companies' overseas mergers and acquisitions.