Research On Financing Risk Control Of Overseas Merger And Acquisition Of State-owned Enterprises

With the development of global integration,mergers and acquisitions activities have played an increasingly important role in the activities of business operations.From the beginning of 2008,the scale and number of overseas M&A activities of Chinese companies have increased rapidly,but it is undeniable that There is still a big gap between overseas M&A in China's overseas M&A,and lack of experience in decisionmaking and management of M&A activities.This has caused Chinese companies to repeatedly experience setbacks in their actions to go abroad at an early stage,and has more experience in M&A financing risk management.It is inadequate,and there is still a great lack of understanding of the procedures and systems for financing international and M&A targets in the M&A market.In recent years,the “going out”,“One Belt and One Road” and the needs of Chinese companies' own development have increased the frequency of overseas M&A activities,and the corresponding risk of M&A financing due to lack of experience has become increasingly prominent.The background of stateowned enterprises' overseas acquisitions and state-owned assets makes state-owned enterprises in an active response to the national call and the status of “forerunners” in overseas mergers and acquisitions.However,the lack of understanding of financing risks and irrational management decisions often appear in mergers and acquisitions activities to provide financing for overseas mergers and acquisitions of state-owned enterprises.The problem is imminent.This article mainly defines the concept of M&A financing risk based on the research results of domestic and foreign scholars.Through combing the financing risk theory of mergers and acquisitions,it also elaborates the existing overseas M&A status of Chinese SOEs and private enterprises,and the types of overseas M&A financing methods and overseas M&A financing.The characteristics of risk lay the foundation for the follow-up analysis of the risks brought about by the financing behavior of China Chemical's merger and acquisition of Syngenta's case.In the case analysis,the financing risk of SOE overseas M&A is divided into financing structure risk,financing payment risk and policy risk.At the same time,qualitative and quantitative risk identification methods have been used to analyze and measure the financing structure risks and financing payment risks that have occurred in China Chemical's merger and acquisition of Syngenta financing cases,and at the same time,the risks brought about by the policies have been analyzed.Finally,according to relevant theories of SOE overseas M&A financing risks,effective management measures and suggestions for improvement will be made for future SOEs' risks in overseas M&A financing.