Actual Combat: How To Prevent M & A Credit Risk?

Chinese enterprises have not formed the basic ability to participate in global competition in the period of WTO protection. One of the main reasons is that Chinese enterprises do not have the same capital market support from European and American enterprises. There is no shareholder relationship between Japanese banks and enterprises, and there is no participation of financial instruments such as industrial funds. The characteristics of non commercial operation of Chinese commercial banks make the relationship between banks and enterprises simple and complex. The simple reason is that whether or not to grant credit depends on policy orientation. The complexity is that the internal moral hazard is not effective in controlling the risk caused by the internal control mechanism. At present, mergers and acquisitions involving Chinese enterprises in China and overseas will release huge demand for capital. China's commercial banks should be Local enterprises In China and overseas, credit support will be provided by local and overseas mergers and acquisitions. If China's commercial banks as enterprises can not provide credit support to enterprises in the industrial integration of Chinese enterprises, international banks will fill vacancies, and China's commercial banks will further lose the opportunity to maintain and develop high-quality customer resources.

But relying solely on bank loan support and Guarantee corporation or other bank guarantees to complete the acquisition is unrealistic and also causes the risk of bank loans too large.

In a common cross-border M & A, a bank providing M & a credit support will choose a consultant team for the enterprise (because the initial M & A fund provided by the bank is usually designated by the bank instead of the enterprise designated) to complete the omni directional service from the merger and acquisition plan design, the legal framework design, and the multi-level financing arrangement plan. Another important point is that most banks in the majority of countries choose their own advisory teams, except that investment banks and accountants can be foreign countries. Others, such as merger consultants and lead lawyers, are generally domestic institutions. The main reason is that the main body of mergers and acquisitions is domestic enterprises, and the purpose of mergers and acquisitions is to integrate foreign enterprises into the development strategy of domestic enterprises. consultative body National attributes.

More and more coming from transnational corporations The merger and acquisition of local enterprises will force us to re-examine the industrial policies such as credit and taxation, and re-examine the relationship between banks and enterprises, the relationship between banks and enterprises and social intermediary organizations in the process of globalization. We should re establish a new relationship between banks and enterprises that is healthy, equal, dependent on each other, and jointly promoted and developed. Enterprises should build confidence and trust in local intermediary organizations, take part in mergers and acquisitions with the professional ability of local intermediaries, and eliminate risks of core resources such as technology, brands and channels in mergers and acquisitions. In particular, banks should take advantage of the external forces of social intermediaries to resolve and transfer the credit risk of mergers and acquisitions under the control of insiders.