Financial Risk Research Control On HNA Technology Bought IMI

After the global financial crisis in 2008,the world's economy suffered heavy losses,and China's economic growth slowed down significantly.Enterprises are facing a severe international competition situation,which urgently requires strategic transformation.Under the new normal economic situation,the Chinese government put forward the "going out" development policy and the "one belt and one road" strategic plan,and began to invest in the oversea markets.Under the policy call,China's large enterprises began to explore new markets and seek strategic transformation of enterprises.Since 2016,many large enterprise groups,such as Wanda,Haihang,Geely Automobile and so on,have accelerated the pace of overseas M&A,raised a lot of funds through capital operation,and acquired many high-quality assets all over the world.However,due to historical factors,such fast-paced M&A of Chinese enterprises has very limited experience in cross-border M&A,and its failure and prognosis are not as good as expected.There are many cases in this period.Therefore,in cross-border M&A,Chinese enterprises should not only learn from the experience of successful foreign enterprises and lessons from failed enterprises,but also find more suitable M&A methods and risk control measures from successful cross-border M&A cases in China.At the end of 2016,HNA Technology spent huge sums of money to complete the acquisition of Ingram Micro,hoping to complete its own strategic transformation with IMI.However,at the end of 2018,the company issued an announcement that it was negotiating with relevant parties to sell IMI or cooperation.The huge financial risk of this "snake swallow elephant" merger finally broke out,basically determining the outcome of the merger failure.The financial risk in this merger case is very representative and Chinese,and it is worth studying.By means of literature research,inductive deduction and case study,I have analyzed the financial risks and their interactions at each stage of the case,investigated their causes and impacts,and summarized the mechanisms for preventing and controlling financial risks of cross-border M&A with Chinese characteristics.It is hoped that the overseas merger and acquisition of large Chinese enterprise groups will be supported by some suggestions.The main contribution of this paper is to combine the cases and theories that are closer to the characteristics of Chinese companies 'mergers and acquisitions,and to trace the financial risks in a deeper level,not only from a financial point of view.At the same time,it also looks for the focus of financial risk prevention and control at the corporate strategic and business level,comprehensively considers financial factors and non-financial factors,and hopes to put forward some useful suggestions for Chinese companies to better internationalize development and strategic transformation,minimizing losses.