Risk Management And Countermeasures Of Transnational Merger And Acquisition In Enterprises

With the proposal of the "Thirteenth Five-Year Plan",China's economic development has also been maintaining its vitality.At this time,the competition among enterprises is not only a scale but also an innovation.The most important thing for enterprises to improve is to maintain the vitality of innovation so that they will not be abandoned in the market competition.Internal innovation in enterprises requires high investment in scientific research,which greatly increases the cost of the enterprise.Therefore,many companies choose to increase their competitiveness through the combination of strength and strength to achieve economies of scale.However,with the increasingly fierce domestic competition,the combination of strengths and strengths among domestic enterprises can no longer meet the needs of the development of enterprises.Therefore,Chinese enterprises actively seek other highly efficient development approaches.Cross-border mergers and acquisitions as a form of investment can enable companies to quickly obtain quality resources,expand market share,and open the international market.Successful mergers and acquisitions can expand the scale of the company,help companies to diversify their business risks,break through barriers to international trade,and quickly enter the markets where the target companies are located.This is an efficient way of capital operation.In cross-border mergers and acquisitions,companies will choose the right M&A target according to their own development needs.Most companies will give priority to well-known companies in order to quickly enter the international market,that is,enterprises in developed countries,but when these countries conduct cross-border mergers and acquisitions Because mergers and acquisitions have failed due to legal risks,cultural integration risks,etc.,enterprises may be more inclined to resource-rich countries when giving priority to resource issues.These countries are in a period of rapid economic development and cross-border mergers and acquisitions can bring them new opportunities.The economic dynamism of the country,but mergers and acquisitions in these countries mean that they may face political risks.Developing resource-rich countries are often accompanied by political turmoil and incomplete laws and regulations.In recent years,the number of cross-border mergers and acquisitions by Chinese companies has continued to grow,and through inquiring public announcements,we can see that the number of cross-border mergers and acquisitions by Chinese companies reached 363 in 2015,and the transaction amount was 87 billion US dollars,while the number of cross-border mergers and acquisitions in 2016 reached 438,a year-on-year increase.It increased by 21% and the transaction amount increased by 148% from the previous year.In 2017,the number of cross-border mergers and acquisitions in China decreased by a certain extent.In 2017,there were 400 cross-border M&A transactions,312 of which disclosed amounts.Compared to 2016,the number of cross-border M&A deals in China returned to a rational state in 2017.Even so,compared to 2015,the number of cross-border M&A transactions by Chinese companies in 2017 is still on the rise.Based on the development of cross-border mergers and acquisitions by Chinese companies,this paper comprehensively summarizes the current status of mergers and acquisitions of Chinese companies after the “One Belt and One Road” policy is put forward,and proposes that China through the preparatory phase of cross-border mergers and acquisitions by Chinese companies,the transaction period in mergers and acquisitions,and the integration period after mergers and acquisitions.The risk factors that companies may encounter when transnational mergers and acquisitions list risks.After further describing the status quo of mergers and acquisitions in China's aviation industry and possible risks in cross-border mergers and acquisitions,Hainan Airlines Group was used to use Hainan Airlines' Bohai Group to control the company's acquisition of Avolon and analyze the risk factors that may arise during the acquisition process.The countermeasures for risk are put forward,and finally the HNA risks in dealing with mergers and acquisitions are discussed.This article summarizes the possible risk factors for cross-border mergers and acquisitions by companies.Based on the successful mergers and acquisitions of aviation companies,this paper briefly describes their experiences in successfully avoiding M&A risks,and summarizes the risk points that Chinese companies should pay attention to in cross-border mergers and acquisitions,and analyzes risks.Management's countermeasures hope to provide reference for China's cross-border mergers and acquisitions in the future.