Study On The Application And Risk Management Of M&A Fund In Cross-border M&A

The speed of mergers and acquisitions in China has been accelerating,and "PE+listed company" type mergers and acquisitions fund has played a promoting role in cross-border mergers and acquisitions of listed companies.Due to the complex structure and imperfect external supervision of this type of M&A fund,as well as the differences in culture,system,law and other aspects of cross-border M&A,enterprises will face complex and diverse risks in the process of using M&A funds to carry out cross-border M&A.Therefore,how to manage the risks of M&A funds in this process is a hot topic in theoretical research and a difficult point in enterprise practice.It is the core problem of this paper.In order to study this issue,this paper hopes to analyze the potential risk factors in the application process of M&A fund in cross-border M&A through case studies of typical enterprises,and study the risk countermeasures adopted by M&A fund.Based on risk management theory and by combining literature research and case studies,this paper reviews and summarizes domestic and foreign literature to understand the research status of cross-border M&A,M&A fund and risk management.Based on this,a single case study method is adopted.A typical case of M&A fund’s participation in the cross-border M&A of listed companies is selected--the "snake-swallowed elephant" type M&A of the world’s environmental protection giant U Company by environmental protection Company A.Firstly,the motivation of cross-border M&A between the two parties is analyzed,and the motivation for the establishment of M&A fund is clarified.Secondly,the cross-border M&A process is sorted out,and the risks in the application process of HY M&A fund are identified and analyzed.There are usually principal-agent risks,financing risks,target selection and valuation risks,resource integration risks,inadequate information disclosure risks,exit risks and default risks,etc.,and the countermeasures and control measures taken by M&A fund for these risk points are studied.And from the financial status and operating status of the enterprise risk control effect evaluation,finally summed up the experience,put forward suggestions.The contribution of this paper is to enrich the risk management research of M&A fund in the process of cross-border M&A.Through a comprehensive analysis of typical successful cases,it identifies and analyzes the key risk points used by M&A fund in the process of cross-border M&A,and studies the measures taken to prevent and deal with the risk points,which is conducive to the success of M&A.For the society,we should improve the laws and regulations related to M&A fund and improve the supervision mechanism to help enterprises successfully carry out M&A with M&A fund,so as to promote economic transformation and upgrading.For the development of the whole country,enterprises use merger and acquisition fund to carry out mergers and acquisitions,realize the integration of industrial chain and their own transformation and upgrading,so as to achieve scale effect,reduce cost and increase efficiency,benefit the people,and promote the construction of a healthy and good society.