Analysis of Risk and Preventive Measures of Chinese Enterprise Overseas Merger and Acquisition
|School||Institute of Fiscal Science|
|Keywords||Chinese Enterprises Overseas Merger and Acquisition Risk Analysis Risk Prevention|
Since the reform and opening up policy in the end of the1970s, hundreds of billions of dollars of foreign investment into China. Followed by technology, equipment, personnel, modern enterprise management system, they provide a strong impetus to Chinese economic boom. From the perspective of capital flows, this process is the process of capital input. With the constantly push forward Chinese reform and opening in-depth and global economic integration, the comprehensive strength of Chinese state-owned enterprises, private enterprises increased. In the1930s, foreign investors to invest in China Today, Chinese enterprises overseas to seek new opportunities, which includes not only open up a terminal outside users, while covering the demand for factors of production of raw materials, highly qualified staff, advanced management techniques. In the reform and opening up of Chinese enterprises overseas investment by a small amount of government-led project-based, the current form of the prosperity of all kinds of enterprises competing to go out. This process is not only the course of the Chinese enterprises to invest overseas, Chinese integration into the global economy, and continuously improve a vivid manifestation of their own strength. Chinese enterprises overseas mergers and acquisitions occurred in the macro context of Chinese economic transition period, after nearly three decades of development has become increasingly active and has made remarkable achievements, China’s Overseas M&A development speed is very fast, but due to various factors the impact of the economic effects of a definitive merger but people far from satisfactory, due to their special situation and the economic system, the overseas M&A success or failure factors more complex, facing more problems and risks. Less for overseas mergers and acquisitions in China at this stage, but these risks if you can’t effectively guard against and defuse it will lead to the failure of mergers and acquisitions. Therefore, research and analysis of Chinese enterprises in overseas mergers and acquisitions, to systematically identify the various risks, and to take active preventive measures is essential to the effectiveness of enterprises in overseas mergers and acquisitions. The risk analysis showed that Chinese enterprises overseas mergers and acquisitions are often accompanied by great risk, only thoughtful, grasp the opportunity, in order to control risk and reduce losses.Firstly, in this paper the basic concept from the overseas mergers and acquisitions, to explain the specific meaning of the Overseas. Overseas M&A is a dual property market behavior, both belonging to foreign direct investment is an extension of mergers and acquisitions, and summarizes the theoretical basis of the Overseas Therefore, the first from two angles. Since the late1980s, the development process of Chinese enterprises in overseas mergers and acquisitions can be roughly divided into three stages according to the level of activity from the initial exploratory stage, gone through the initial stage of the transition smoothly into the acceleration stage of development and growth, even if the current The global economic malaise in the financial crisis, Chinese enterprises overseas mergers and acquisitions of size and level of activity remains to show strong growth momentum. Although the road of Chinese enterprises overseas mergers and acquisitions, expressed initially as a monopoly state-owned enterprises, with strong capital and strong government support for overseas mergers and acquisitions to enter the international competitive market, but M&A diversification trends are becoming evident, a number of private enterprises, the private sector gradually became active in the international arena. China’s industrial structure upgrade also makes overseas mergers and acquisitions industry distribution center of gravity gradually from the energy and resources sector, electronics, consumer, business to transfer to meet Chinese economic growth to the consumer-driven economic transformation needs. The combination of Chinese M&A change of subject and industry selected location choice are also beginning to rational and maintain a balanced and stable, no longer of any one region, but a more mature perspective to integrate global resources. Although the speed of development of Chinese Overseas M&A is very rapid, but due to various factors, errors in the preparatory and post-operation, the economic effects of post-merger often can’t achieve the desired results. Lack of long-term M&A strategic planning, preliminary preparation is inadequate, acquisition costs assessment enterprises are facing huge financial and financial pressures, lack of international reserves of high-end talent, lack of relevant policy guidance and legal support, excessive government regulation. These are China’s performance in practice. This article focuses on two aspects of the external macro environment and internal operations in-depth analysis of the main risks facing enterprises in overseas mergers and acquisitions, including the two parts of the systematic risk and non-systematic risk, for the analysis of the main risk from a macro level and micro level, respectively, for the enterprise Overseas M&A corresponding risk prevention measures and policy recommendations.