Enterprise Cross-industry Merger Risk Research

Enterprises in traditional industries entering cross-border mergers and acquisitions into emerging industries with innovation as the driving force of development are one of the important ways for them to use exogenous forces to promote their own transformation and transformation.The new energy vehicle industry,as one of the seven strategic emerging industries established in China,has a strong leading role in the long-term development of our economy and the adjustment and upgrading of the industrial structure.Under the guidance of breakthroughs in battery technology and national policies,the rapid development of the new energy vehicle industry has also attracted listed companies in various fields to run.From 2014 to 2018,the number of investment and financing of China's new energy vehicle industry has shown a rapid upward trend.Cross-border automobile manufacturing has become a hot word for a while,and entering the new energy automobile industry through cross-industry mergers and acquisitions is the choice of most listed companies.However,it is worth noting that in the past few years,many cases of mergers and acquisitions in the field of new energy vehicles,failures have frequently occurred.On the one hand,this shows that there is a greater risk of mergers and acquisitions in emerging industries,and on the other hand,that Chinese companies dare to make mergers and not show good mergers and acquisitions.Blind impulsive mergers and acquisitions may bring more risks than opportunities.In this context,this article selects the case of J&R Fire Fighting,a cross-industry merger and acquisition of Shenzhen OptimumNano Battery Co.,Ltd.,a high-profile listed company in the field of new energy vehicles.The listed companies in traditional industries face cross-industry mergers and acquisitions of companies in the automotive power battery industry.They analyze the strategic risks,valuation risks,operating risks,and integration risks,and propose several countermeasures to prevent these risks.This thesis can be divided into six parts:The first part is the introduction,covering the research background,theoretical significance,practical significance,current research status at home and abroad,research content and research methods,and innovative points.The second part expounds the meaning and motivation theory of cross-industry M&A and the theory of M&A risk management.The third part outlines the background of the case selected in this article and analyzes the characteristics of the automotive power battery industry.The fourth part analyzes the risks faced by J&R Fire Fighting cross-industry merger and acquisition of OptimumNano.The fifth part is based on the summary of the previous parts,and puts forward some feasible suggestions for cross-industry mergers and acquisitions.The sixth part is the conclusion of this article,which summarizes and prospects the full text.The research methods used in this article are literature research and case analysis.Based on the characteristics of the automotive power battery industry,this paper studies the risks faced by traditional industries listed companies J&R Fire Fighting cross-industry merger and acquisition of new energy automobile industry leader OptimumNano.It is expected that Chinese companies will cross-industry mergers and acquisitions of new energy automotive The risks that enterprises may face when giving some inspiration.