Discussion On The Risk And Control Of Overseas M&A Of Chinese Enterprises

Under the background of the Belt and Road Initiative in China,overseas M&A has been an important way to help Chinese enterprises achieve their international strategic layout because of its characteristics that can help Chinese enterprises achieve rapid expansion.However,overseas M&A itself has great risks.If the risks are not recognized and controlled in the process of overseas M&A,it may lead to m&a failure and damage the overall economic interests of enterprises.Overseas MERGERS and acquisitions involve two or more national entities,resulting in high costs and complex operations.In addition,Chinese enterprises have a weak sense of risk control in the process of overseas mergers and acquisitions.Moreover,Chinese enterprises like to blindly follow the trend of projects in the process of operation.Under the influence of this adverse wind,Chinese enterprises often fail in the process of overseas MERGERS and acquisitions.Therefore,enterprises must pay attention to the impact of risk,through effective control measures into effective risk control,and then change this adverse phenomenon.This thesis makes an in-depth study on the case of Jifeng Stock acquisition of Grammer Company in Germany.As the most distinctive overseas MERGER and acquisition of China in2018,this merger and acquisition featured a "snake swallowed elephant" overseas merger and acquisition for a typical auto parts enterprise acting as a "white knight".Given the risk of China’s enterprises is the key to the most easy to ignore in the adverse factors affecting the problems in the process of overseas m&a,based on the risk analysis as the main line of research,at the same time to the peak equity risk control measures and effect has carried on the detailed analysis,in order to achieve the comprehensive analysis,highlighting the main line "research results,at the same time based on the case of the timeliness and particularity,A detailed analysis of this case will provide some reference for Chinese enterprises to carry out overseas MERGERS and acquisitions.This thesis is divided into six parts.In the first part,it mainly expounds the research background and significance of this thesis,and mainly introduces the significance of analyzing the overseas m&a case of Jifeng Stock.At the same time,this part also carries out the classification and sorting of relevant literature research from the three main aspects of overseas M&A including the meaning,risks and risk control methods.It can be seen from the elaboration in the first part that although foreign scholars started their studies on overseas M&A earlier,they are more mature in theoretical statements.However,their studies are all effective studies based on overseas m&a cases in developed countries and have formed their own theoretical basis.It can be seen that these theories are not applicable to the situation of China’s developing countries,so we need to conduct more domestic researches on overseas M&A.Secondly,in the second part,it elaborates the connotation of M&A and related concepts of overseas M&A,and expounds the important risks in the three main stages of the process of overseas M&A: the risk in the stage of M&A preparation,the risk in the stage of M&A transaction and the risk in the stage of M&A integration.At the same time,according to the risks in the process of overseas M&A,it explains the control measures usually adopted,including four main types of risk avoidance,risk transfer,risk conversion and risk compensation.The third part elaborates all aspects of risk information of the overseas acquisition of Grammer.In this merger,Jifeng Launched the merger mainly based on the motivation of expanding overseas main business and acquiring high-quality target assets,while the acquired party sought Jifeng as the "white knight" out of the motivation of not being taken over by malicious takeover.At the same time,this part also gives a detailed description of its overseas M&A process.The fourth part introduces the main risks and reasons in the process of Jifeng stock merger and acquisition,mainly carries on the risk analysis from the preparation,transaction,integration three stages,and carries on the specific analysis to the causes of the risks in each stage.The fifth part mainly analyzes the risk control measures taken by Jifeng In the process of overseas M&A,and evaluates the effect of the risk control measures taken by Jifeng.In terms of the direction of synergies,Jifeng And Grammer have achieved a certain degree of synergies in the auto parts industry.At the end of this thesis,the sixth part of the case analysis for the effective conclusion summary and revelation.In order to carry out successful overseas MERGERS and acquisitions,it is necessary to scientifically select payment methods and lay emphasis on the formulation of perfect m&a strategies,as well as to use new payment instruments and pay attention to the application of consideration adjustment mechanism.