Research On Financial Risk Control Of Cross Border And Industry M & A

In the context of the new normal economy and supply-side structural reforms,many Chinese enterprises have actively transformed through mergers and acquisitions to adjust their product structure and broaden their development prospects.In cross-border mergers and acquisitions,the national political environment,market environment,and legal supervision environment of the two companies are quite different,and information asymmetry often occurs.Cross-industry mergers and acquisitions are conducted between companies in two different fields.This shows that cross border and industry mergers and acquisitions will face more uncertainty and financial risks than domestic mergers and acquisitions in the same industry.Therefore,it is a very necessary work to effectively control the financial risks of cross border and industry mergers and acquisitions,which will greatly affect the effect of corporate mergers and acquisitions.This study can provide a reference for companies to conduct cross border and industry mergers and acquisitions,so that M & A companies can effectively identify and control financial risks in the process of cross border and industry M & A.This article selects Tianhai Investment Development Co.,Ltd.’s cross border and industry M & A of Ingram Micro Inc.as a case study object.This M & A case has distinctive features by both small and extensive M & A and cross border and industry M & A.This is a successful cross border and industry M & A,there are many lessons for reference.This article first combs the domestic and foreign research literature,and expounds the relevant theories of financial risk and financial risk control in cross border and industry M & A.Secondly,it introduced the details of M & A cases and analyzed the financial risks of Tianhai Investment M & A IMI.Thirdly,according to the dynamic risk control theory of corporate mergers and acquisitions,it focuses on analyzing the current situation,deficiencies and causes of financial risk control measures of Tianhai Investment.Then,it proposes solutions to the insufficient financial risk control of Tianhai Investment in order to reduce the financial risks left by mergers and acquisitions.Finally,this article describes the case revelation in order to warn other companies to pay attention to the financial risks that cannot be resolved in the later stage,and should do a good job of controlling the financial risks in the early stage of the merger.Case inspiration mainly includes the following four aspects.In the future,cross border and industry M & A companies should control valuation risks in advance and focus on differences in accounting standards;actively seek joint investors and boldly try new financing methods;Scientifically choose the payment method,installment payment to mitigate payment risks;timely conduct impairment tests to reduce goodwill Impairment risk.