On the Risk Identification of Chinese Enterprises in Overseas M&As

The first step of M&A risk management is to identify and evaluate potential risks, which is the premise of risk management. If risk managers cannot identify the right potential risks, they will lose the best opportunity to deal with these risks and the risks will still exist. Therefore, the academics should strengthen M&A risk identification research and guide the M&As practice, with the purpose to identify the risks before or when they occur. If this purpose can be achieved, the M&A project manager can take correspondent action in time and greatly reduce the loss of the M&A failures. M&A risk identification is to apply proper means to understand the risks by analyzing every stage of the M&As. Taking correspondent action before or at the time when the risk occurs may reduce the loss. A right identification of the overseas M&A risks is the basis of risk evaluation, overseas M&A decision-making and risk control. It is very important to give some advises on the risk identification subjects and correspondent specific methods in every stage of Chinese enterprises overseas M&As.