On Risk Management and Response Strategies for Cross border Mergers and Acquisitions of Enterprises

Taking Hainan Airlines as an Example

Abstract

Based on the development of cross-border M&A of Chinese enterprises and the status quo of M&A of Chinese enterprises after the "the Belt and Road" policy was put forward, this paper proposes the risk factors that Chinese enterprises may encounter in cross-border M&A and lists the risks through the research on the preparatory stage, transaction period in M&A and integration period after M&A. After further describing the current situation of China's aviation enterprise mergers and acquisitions and the potential risks in cross-border mergers and acquisitions, this paper introduces Hainan Airlines Group, and uses the case of Bohai Financial Holding, a subsidiary of Hainan Airlines, acquiring Avolon to analyze the possible risk factors that may arise during the merger and acquisition process, propose risk response measures, and finally explore the risks that Hainan Airlines may face in the merger and acquisition process. This article summarizes the risk factors that may arise when enterprises engage in cross-border mergers and acquisitions. Based on cross-border merger and acquisition cases of aviation enterprises, it briefly describes their experience in handling merger and acquisition risks, summarizes the risk points that Chinese enterprises should pay attention to in cross-border mergers and acquisitions, analyzes risk management strategies, and hopes to provide reference significance and role for future cross-border mergers and acquisitions of Chinese enterprises.