Research On The Evaluation And Control Of Finacial Risk About Cross-border Mergers And Acquisitions Of Chinese Enterprises

With the rapid development of economic globalization,companies from all over the world take the way of cross-border M&A to expand the overseas market,enhance the core competitiveness.Along with the enhancement of the Chinese competition strength,Chinese companies have also go abroad,seek overseas investment opportunities and participate in the competition for global resources.In recent years,Chinese enterprises have approached the boom in cross-border M&A.Because cross-border M&A spreads across different countries and there is a huge gap in the macro-environment,it is risky,especially the financial risk,which is a decisional factor throughout the course of enterprise M&A.The cross-border M&A of chinese enterprises started relatively later,and most of them ended in failure.Therefore,it is particularly important to evaluate and control the financial risk of the cross-border M&A.Based on the summary of domestic and foreign research achievements of financial risk theory about the cross-border M&A,this paper goes into the financial risk according to risk definition-analysis-evaluation-control logic.Firstly this paper classifies the financial risks of cross-border M&A and makes a detailed analysis of its specific performance.then introduces and compares several evaluation method used.Afterward,this paper integrates theory with practice,chooses the case of Lenovo mergerring IMBPC,use the fuzzy comprehensive evaluation method to evaluate the financial risks of the case and comments on the control measures of financial risks.Finally,this paper puts forward a series of control measures for the financial risks of cross-border M&A of Chinese enterprises.This study shows that the financial risks of cross-border M&A of Chinese enterprises mainly include pricing risk,financing risk,payment risk,foreign exchange risks,debt risk and integration risk.The evaluation methods are numerous,but each has its defects.Currently there is no way to measure the financial risks of cross-border M&A completely and objectively.In this case,Lenovo mergerring IMBPC has Higher financial risks,especially the pricing phase,debt phase and integration phase.The significance of this paper is to provide some references for the risk control of cross-border M&A of Chinese enterprises and help chinese enterprises to successfully complete cross-border M&A activities.