A Research On Financial Risk Prevention Of Transnational Merger And Acquisition In Enterprises

Nowadays,cross-border merger and acquisition has become a common phenomenon in the world.It is a hot topic in academic and trade circle.It is an important way of resource allocation,which affects the governance structure and control structure of companies,changing the structure of many industries.However,we should not only see the impact,but also pay attention to the risks.The main reason for the failure of mergers is the financial risk.Although merger and acquisition has a rapid development in recent years,it is still in the initial stage.Improving the risk awareness and facing the financial risk of transnational mergers and acquisition can effectively increase the probability of successful mergers and achieve goals of M & A.This paper,taking the multinational merger and acquisition of RIM company of the lithium industry of Gan Feng,as an example,sums up the reasons for the success of the multinational merger and acquisition of RIM company of the lithium industry of Gan Feng.It may produce the financial risk and the process and ideas to prevent it.This article uses the literature research method,the case study method and the quantitative analysis method,and so on,taking the multinational merger and acquisition of RIM company of the lithium industry of Gan Feng as an example,focusing on the financial risks faced in the transnational merger and acquisition,and giving the corresponding prevention strategies.The specific structure of the article is as follows: the first chapter mainly discusses the background,purpose,content,method and research significance of cross-border M &A.The second chapter,combine the role of the research on financial risk of transnational mergers and acquisitions.The third chapter is about the current situation of financial risk control of M & A in China.According to its characteristics and current situation,we try to find out some control measures of financial risks in cross-border mergers and acquisitions.The fourth chapter is about the case of Gan Feng Li's acquisition of RIM company in Australia.The fifth chapter is about the financial risk analysis and preventive strategies of Gan Feng Li's acquisition of RIM company in Australia.The sixth chapter,the conclusion and the prospect.Transnational mergers and acquisitions have great strategic significance for China's non-ferrous metal smelting enterprises,especially for Gan Feng lithium industry.The related research on financial risk of mergers and acquisitions provides a reference for improving the risk prevention system oftransnational mergers and acquisitions.In theory,the implementation of transnational mergers and acquisitions is conducive to enhancing the competitive advantage and economic strength of Chinese enterprises in the world.At present,there are few studies on the systematicness and completeness of cross-border mergers and acquisitions in China's nonferrous metal smelting industry.This paper has a theoretical and practical value on the study of the merger and acquisition of RIM company in Australia.In the course of cross-border mergers and acquisitions,there are some financial risks that can be regulated and regulated.It is beneficial to evaluate the financial risks and effective control of the merger and acquisition,which is beneficial to the normal operation of transnational mergers and acquisitions.(1)in terms of decision-making risks,we should make full use of due diligence and carry out omnibearing valuation of target enterprises.(2)in order to effectively reduce policy risks and exchange rate risks,we should set up overseas funds management centers as far as overseas mergers and acquisitions companies are concerned.(3)in terms of M & A financing,we should make use of the diversity of financing tools to improve the disclosure protection clauses in the agreement.(4)the integration of mergers and acquisitions should focus on financial integration,strengthen communication between the two sides through setting up buffer,and ultimately achieve effective integration between the two sides.The financial risks in cross border mergers and acquisitions are objective and controllable.The identification and control of financial risks in mergers and acquisitions will help improve the effectiveness of cross-border mergers and acquisitions.