Exploration of Transnational Merger and Acquisition Decision Based on Risk Control

Abstract

In order to guard against the risks that enterprises will encounter in transnational merger and acquisition, starting with the theory and reality of global enterprise transnational merger and acquisition, the motivation of Chinese enterprises' transnational merger and acquisition is revealed. In addition, various links of risk factors in the process of transnational merger and acquisition are analyzed, and the main risks faced by Chinese enterprises in transnational merger and acquisition are identified. Finally, the risk control and prevention methods suitable for enterprises are put forward, so as to provide reference for Chinese enterprises to prevent merger and acquisition risks.

Research on the Cross-border M&A

“…To restructure Thomson's business in Europe, TCL laid off numerous employees, but according to the French labor law, TCL had to pay tens of millions of euros to compensate the laid-off employees. Thomson' s executives left after the enterprise merger, but TCL failed to promote international talents in time, so the company's performance declined severely [3]. Bluestar adopted a series of human resources integration measures to retain Adisseo ' s talents.…”

“…Then, according to the needs of enterprise strategic development, they put forward measures to reduce the cost of enterprise merger and acquisition [2]. Zhong reveals the motivation of cross-border M&A of Chinese enterprises, analyzes the risks of cross-border M&A, and finally puts forward the risk control and prevention methods suitable for enterprises [3].…”