Identifying Risks in Cross-border Mergers and Acquisitions: Taking Geely as an Example

Abstract

The merger and acquisition integration of enterprises involves the future development of enterprises, especially for cross-border integration, due to the differences in management and culture between the two enterprises, the difficulty of integration is relatively higher. Complementary advantages can only be achieved when both parties achieve better integration. Before implementing M&A integration, the company should do a background check on the acquisition target, confirm the possible risks after the acquisition, and take comprehensive countermeasures. In the process of implementing mergers and acquisitions (M&A) integration, the acquirer should actively establish effective communication channels and reduce the cultural differences of the enterprise during the communication. In terms of follow-up operation and management, we should actively learn the advanced management experience and operation model of the target company. people can adopt a cooperative model to retain the original operation model of the acquired company, and at the same time encourage the enthusiasm of employees for independent research and development. Finally, enterprises should pay attention to the human resource management after the acquisition. By understanding the needs of employees, formulate targeted plans to retain excellent employees, and attract new talents through salary, benefits, and corporate culture, so as to realize the people-oriented development concept.