Financial Risks And Prevention In Cross Border Mergers And Acquisitions

Since twenty-first Century,in the background of rapid economic development,enterprises have brought more opportunities for development,while enterprises are facing more market competition.In order to improve the competitiveness of enterprises and seek more resources and markets,more and more enterprises have begun to implement the "go out" strategy and join the tide of transnational mergers and acquisitions.China's overseas M & A shows a rising trend,but the relevant data show that the success rate of cross-border M & A is not high.Due to the lack of mature experience in merger and acquisition in China,the improper handling of financial risks in M & A leads to some enterprises not only fail to achieve the strategic objectives of the merger and acquisition,but also bring more financial risks to the enterprises themselves.Therefore,how to help Chinese enterprises to avoid financial risks in the process of mergers and acquisitions has become a matter of great importance.This paper selects Smith field as a research object,analyzes the risk of ShuangHui in the phase of M & a preparation,implementation,integration,and the control measures taken by ShuangHui for various stages of wind insurance.The successful experience in mergers and acquisitions will provide a reference value for financial risk control for other enterprises.This article is divided into four parts: the first part mainly discusses the background and significance of this article,and the research trends at home and abroad.The second part mainly introduces the theoretical basis of enterprise merger and acquisition,including the concept,classification,motivation theory of merger and acquisition,and the concept and class of financial risk of merger and acquisition.The third part focuses on the case analysis of Smith field in ShuangHui merger and acquisition,expounds the motivation of merger and acquisition,the financial risk and control measures in the preparation stage,the implementation stage,the integration stage,and the fourth part,based on the case analysis,summarizes the experience,and carries out transnational financial risks to our enterprises.Suggestions are made by control.