Analysis Of Motivations And Risks Of Chinese Private Enterprises' Overseas M&A

Since the financial crisis brought to the world economy in 2008,overseas merger and acquisition has been fatigued and weak all over the world.Meanwhile,the pace of overseas merger and acquisition is quickening for Chinese enterprises,both in quantity and scale.While,the state-owned enterprises rather than private enterprises have conducted largescale overseas mergers and acquisitions.The motivations and risks of overseas mergers and acquisitions by private enterprises have received extensive attention.This paper describes the development process of Chinese private enterprises' overseas investment and the status of its overseas mergers and acquisitions.Taking Midea Group as an example,this paper analyses the process of Midea Group's overseas acquisition of German KUKA in 2016,especially the changes in the company's operating performance after its acquisition of KUKA.This paper also analyzes the motivations and risks during its overseas mergers and acquisitions.Finally,discussing the motivations and risks of overseas mergers and acquisitions by private enterprises,and suggesting that private companies must formulate detailed strategic plans,choose the right time for mergers and acquisitions,and make adequate preparations when overseas M&A takes place.