Case Analysis Of Wintech's "Snake Swallows Elephant" Cross-border M & A Of Nexperia

Cross-border M&A has always been an important way of Chinese enterprises to be more international.Since the new century,cross-border M&A develop rapidly in our country.affected by policies in domestic and foreign and the new crown epidemic in recent years,the number of cross-border M&A has declined in China,however,with the continuous deepening of the "Belt and Road" and the implementation of our country's "going out" strategy,cross-border M&A will still be the pivotal choice for Chinese companies to go abroad.Retrospect the history of cross-border M&A of Chinese enterprises,"snake swallowing elephant" cross-border M&A s have been happened many times,and many enterprises have made a lot of profits,but more enterprises have fallen into difficulties or even on the verge of bankruptcy due to failure to deal with risks.This paper researches the case of the largest cross-border M&A in the history of China's semiconductor market,the "snake swallowing an elephant" cross-border merger of Wintel Technology with Ansys Semiconductor.Owing to the issue of risk has always been the most important point faced by companies in the process of "snake swallowing elephant" M&A,this paper takes risk analysis as the main line,while analyzing the motivation and performance of the M&A exhaustively,achieves effect of " analyze comprehensively,highlighting the main line".In addition,the research of this article is not only including the risks faced in the process of M&A,but also cover residual risks after M&A.At last,this article summarizes four points of inspiration,and put forwards opinions from six aspects of target selection,policy changes,institutional introduction,financing payment,reasonable valuation and later integration,striving to provide references for other enterprises in China to implement such M&A.This article summarizes a few conclusions: firstly,right target company helps reducing the risk of M&A,Wintel fully considered of the short-term and long-term impact of the target company on itself,while reducing the risk of this M&A successfully.Secondly,reasonable financing payment guarantees the implementation of the M&A.Thirdly,the high valuation of the target increased the risk of M&A.The high valuation of Ansys Semiconductor increased the cost of M&A for Wintel and exposed the company to a huge risk of goodwill impairment.Fourthly,comprehensive post integration can enhance the effect of the M&A.The comprehensive integration between Wintel and Ansys Semiconductor in terms of manpower,channels and industry further enhances the effect of the M&A.