Environmental Impact on Cross-border Mergers and Acquisitions

Abstract

The development of the world economy cannot be separated from the economic exchanges between countries, and the main body of economic exchanges is multinational corporations. With the increase of the number of multinational corporations, more economic development situations will appear. In this paper, the new economic transaction mode of "cross-border mergers and acquisitions" is mainly discussed. In addition, due to the changing international situation, economic development is affected by various factors. Cross-border mergers and acquisitions are economic exchanges between countries. They are easily affected by these factors and will bear great risks. From the perspective of the host country, this paper expounds four environmental factors that have a significant impact on cross-border mergers and acquisitions, and from the perspective of the company, briefly describes which companies are more popular when the environmental factors are the same. By grasping the transaction environment, multinational M&A companies can better understand the objectives of M&A, consider the benefits of M&A, minimize the losses caused by cross-border transactions, and reduce transaction risks. Through the example of Lenovo's merger with IBM, we can see the difficulties and risks that need to be faced in mergers and acquisitions, and we can also see the huge benefits that enterprises can obtain after successful cross-border mergers and acquisitions.