Analysis On The Motivation,Performance And Risk Of "Snake Swallowing Elephant" Cross-border M&A

With the development of China’s economy and the implementation of the "the Belt and Road" and other related policies,more and more Chinese enterprises choose cross-border mergers and acquisitions to expand their own scale and layout the business strategy of globalization.Among them,the "snake swallowing elephant" type of cross-border M&A is the most typical one.The "snake swallowing elephant" type of cross-border M&A is famous for the acquisition of powerful enterprises by weak enterprises,but it is limited to the lack of development of Chinese enterprises themselves,and has not mastered a wealth of M&A experience.The financial analysis,risk assessment and resource integration after M&A cannot be fully grasped,and M&A often ends in failure.Therefore,the "snake swallowing elephant" cross-border M&A can not only provide reference for enterprises’ M&A activities,but also help China’s economy to better "going out".This thesis selects HNA Technology’s acquisition of IMI as a research case.Firstly,it introduces the cross-border merger and acquisition plan of HNA Technology;Secondly,it analyzes the motives of mergers and acquisitions;Then,evaluate the merger performance of HNA Technology,analyze the changes brought by the merger to HNA Technology through the changes in financial indicators in the three stages before,during,and after the merger,and draw a conclusion that the merger ultimately failed;Finally,combined with the motivations and performance to comprehensively analyze the risks of HNA Technology cross-border mergers and acquisitions.Finally,summarize and draw the conclusion that whether the "snake swallows elephant" crossborder M&A is successful or not is not only in a certain result,but also pay more attention to the completion of asset integration and subsequent development after M&A,and put forward suggestions:enhance the enterprise valuation ability,optimize the financing capital structure and formulate appropriate integration plans,to provide reference for the future domestic M&A activities of companies with the characteristics of holding group transactions.