Research On The Factors Influencing The Success Rate Of The Overseas Merger And Acquisition Of Chinese Enterprise

With the development of economic globalization and the proposal of China's "going global" strategy,Chinese enterprises begin to expand rapidly to overseas markets,and the number of cross-border mergers and acquisitions also increased.After the "One Belt and One Road" initiative was put forward,the foreign expansion strategy of enterprises got policy support,and the enthusiasm of Chinese enterprises for cross-border mergers and acquisitions increased further.At the same time,the deepening of the supply-side structural reform also pushes Chinese enterprises to carry out cross-border mergers and acquisitions based on the motivation of technology seeking and talent seeking.However,Chinese enterprises lack of successful experience in cross-border mergers and acquisitions.Against this background,large-scale cross-border mergers and acquisitions lead to huge risks of merger and acquisition failure,especially for the mergers and acquisitions which like a snake swallows an elephant.Therefore,for enterprises to promote crossborder mergers and acquisitions,how to avoid risks and improve the success rate of mergers and acquisitions has very important practical significance.Integrated circuit industry is an important industry related to a country's economic security,military security and even national security.However,the development of China's integrated circuit industry does not match the domestic market demand,and the core technology of the industry is basically in the hands of overseas enterprises.Therefore,China listed the integrated circuit industry as a national key development industry in 2014.Changjiang Electronics Technology belongs to the semiconductor sealed test industry under the integrated circuit industry.In order to obtain the world's leading test technology and improve the competitive advantage,Changjiang Electronics Technology acquired STATS Chip PAC,the world's fourth largest company in the industry.This paper takes this event as a case to study the cross-border mergers and acquisitions of Chinese enterprises.First of all,this paper analyzes the motivation based on the situations of these two enterprises and political and economic background.According to the analysis,the main purposes of the acquisition are to acquire the advanced technologies and R&D team,to expand the overseas markets and to obtain the synergetic effects.This paper also analyzes the risks faced by the cross-border merger and acquisition,and finds that the main risks include illegal risk,customer loss risk,valuation risk and financial integration risk,financial deterioration risk,as well as strategic,operational management and human resources integration risk.Then,this paper uses the technique of factor analysis and financial indicators analysis to analyze the financial performance of Changjiang Electronics Technology,and finds that the financial performance of the company deteriorates in the short term after the merger and acquisition,but then slightly improves,which means the preliminary integration has realized.In addition,this paper also analyzes the nonfinancial performance of Changjiang Electronics Technology and concludes that the company has improved its R&D capability,market expansion capability and resource allocation efficiency to some extent.Finally,this paper summarizes the research results and puts forward valuable suggestions for Chinese enterprises to carry out cross-border mergers and acquisitions under the current background,in the hope of providing references for Chinese enterprises to search for successful factors of cross-border mergers and acquisitions.