Research On Financial Risks And Control Of Cross-border M&A

With the rapid development of the globalization of the world economy,crossborder mergers and acquisitions have gradually become a trend.M&A and reorganization is an important way to optimize the allocation of stock resources in the capital market,and also an important means of industrial upgrading.Generally speaking,cross-border mergers and acquisitions involve not only transactions between companies of the two countries,but also stakeholders of two or more national enterprises.Because Chinese and foreign companies have differences in accounting systems and standards,it is worthwhile to study how to assess the risks faced by cross-border M&A risks and to face risks.Based on a large number of domestic and foreign literatures,this paper applies risk management theory and diversified management theory,first defines the concept of cross-border M&A risk and its financial risk,and analyzes various financial risks faced by cross-border M&A.Targetedness proposes corresponding countermeasures for different risks.The financial risks are divided into four different risks: pricing risk,financing risk,payment risk and integration risk after merger.Combined with the case of US M&A KUKA,the first step is to establish the above risk measurement indicators;the second step is to pass the expert.The opinion method allows experts to quantify the weight of the above indicators;the third step establishes a fuzzy comprehensive evaluation model to evaluate the impact of the above risks on M&A activities.Finally,according to the evaluation results,in the case of the US acquisition of KUKA,the main focus should be on integration risk.Based on the above analysis,the author puts forward specific countermeasures to control risks.In the face of valuation risk countermeasures,the author proposes the advantage of intermediaries,conducts due diligence on case companies,carefully selects reasonable valuation methods,and conducts scientific research on target enterprises.Targeted recommendations such as value assessment;in the response to financing risks,the establishment of a reasonable financing structure,broaden financing channels,reduce financing costs;in the response to payment risks,proposed the issuance of bonds and medium-term notes,strengthen the cash payment budget Management;in the response to the integration of risk measures,unified financial management objectives,unified accounting system,rational use of financial instruments,change of a single payment method,and strengthen the construction of financial talent team.The innovation of this paper lies in the use of fuzzy comprehensive evaluation model to calculate the financial risk faced by the United States,and analyzes the specific risks faced in each stage of the case,and puts forward countermeasures in combination with the financial situation of the United States.Through this case,a complete evaluation system for cross-border M&A risks has been established to help follow-up enterprises to effectively identify and evaluate different risks in cross-border M&A activities,and to ensure the follow-up of enterprises to carry out cross-border M&A activities in an orderly manner.It is an important prerequisite for the success of M&A activities to correctly identify and evaluate the risks faced at each stage and to provide targeted advice.