Research On Overseas M&A Risk Of Finance Leasing Companies

Since 2017,with the tightening of national regulatory policies and the tightening of capital controls,many domestic companies have had to slow down the pace of overseas mergers and acquisitions.Behind the cooling of overseas mergers and acquisitions,various issues such as irrational investment by Chinese companies,blindly neglecting the risk of mergers and acquisitions,and inefficient utilization of funds have emerged.However,in the long run,overseas mergers and acquisitions are powerful measures for enterprises to rapidly realize global operations,and are also effective ways to increase the scale of operations and amplify their competitive advantages.After going through the current “buffering period”,future overseas mergers and acquisitions of enterprises will continue to develop.Therefore,identifying,evaluating,and preventing various risks arising from overseas mergers and acquisitions will help Chinese companies raise awareness of risk,better achieve “going out”,and further enhance international competitiveness.The aircraft leasing industry is a typical heavy asset,high debt,and highly capital-dependent industry.Compared with other industries,the aircraft leasing industry is faced with a greater risk of mergers and acquisitions.However,at present,there is almost no overseas M&A risk research in the finance leasing industry.In this paper,based on the review of domestic and foreign research status and basic theories of mergers and acquisitions risk,combined with the characteristics of the financial leasing industry,the merger and acquisition of financial leasing companies is divided into three phases,and the specific risks of each stage are introduced separately.Risk assessment method based on fuzzy comprehensive evaluation method.This paper adopts a combination of theory and case studies.It selects Bohai Financial Holdings to acquire C2,a commercial aircraft leasing company owned by the US financial leasing company CIT Group,as a case material.The selection of this case has special background and typical meaning.The merger took place in 2017.In the first half of the year,under the backdrop of tight overseas M&A policies,financial deleveraging,and a strong wait-and-see attitude among private companies,HNA,which has frequently conducted overseas acquisitions with high-profile acquisitions,has long attracted attention from all parties;the typical meaning is that M&A is the end of 2017 at the HNA Group.The largest amount of M&A before the burst of the liquidity crisis is very valuable for studying the M&A risks that have already emerged.Based on the aforementioned theory of merger and acquisition risk of financial leasing companies,the paper identifies the unique risks of mergers and acquisitions with the case.After that,it uses a fuzzy comprehensive evaluation method to construct a three-level risk indicator system and invites experts to form a risk assessment team to compare the risk factors.Relative size,the risk rating is scored,and the conclusion is that the M&A risk is highly affiliated.The ABC classification method is used to identify the major risk factors.Finally,in light of the problems existing in M&A,the M&A risk prevention is proposed.The opinions and suggestions have important implications for enterprises to make appropriate risk judgments and preventions based on internal and external environmental changes.