[雙語(yǔ)翻譯]金融類外文翻譯原文跨國(guó)并購(gòu)中的金融風(fēng)險(xiǎn)吉利集團(tuán)-沃爾沃合并案（國(guó)內(nèi)作者，19000字符）

1、Financial Risk in Cross-Border M Financial risk; Case study; Geely Group-Volvo Merger I. INTRODUCTION For more than a century, mergers and acquisitions (M&A) have become a strategic tool for development and expa

2、nsion, and have a significant impact on the current business world. The emergence of M&A led to the complex business structure we saw today, eliminating the market of small and medium-sized enterprises and played

3、a leading role (Kummer & Steger, 2008). The combination of economy, regulation and technological change creates a wave of change that drives companies to consider using M&A to maintain their competitive posit

4、ion in the marketplace. Globalization has forced many companies to explore M&A as a mechanism for developing the international industry and increasing market share (Sui, 2016). There is a lot of research to focus

5、on the huge profits that M&A brings, as well as the importance and impact to its market. This makes it important to study the factors that affect the success of M&A, and have a overall understanding of the dyn

6、amic process of M&A transactions. This paper focuses on Cross-border mergers and acquisitions and analyzes the source of financial risk, which is divided into the preparation phase, the implementation phase and t

7、he integration phase in accordance. The second half of this article, we chose the case of Geely Group-Volvo and make a detailed analysis, discussing the financial risk in three stages. In the end, we investigated and d

8、iscussed preventive measures against the financial risks taken by each stage. II. LITERATURE REVIEW A. Mergers and Acquisitions At least two companies or the parts of two companies join up, and there will be a M&A.

9、 M&A's main purpose is to increase shareholder value. So after the M&A, the newly formed company will have a higher market value compared to pre-M&A companies. While acquisitions and mergers are often

10、used together, there is still a difference between acquisitions and mergers (Coyle, 2000). Merger, refers to that two or more independent enterprises merged to form a business. Usually, a dominant company absorb one

11、or more companies. In fact, the management and ownership of the various enterprises participating in merger remain the same to the new company, which is why the merger is also known as “merger of equals“ (Anow, 2011)

12、. The acquisition refers to that a company buy another company's stock or assets by cash or securities (Coyle, 2000), in order to obtain the ownership of all the assets of the enterprise or part asset, or the cont

13、rol of the enterprise. The essence of M&A is that the main body make institutional arrangements for a transfer of rights based on corporate property rights in the process of corporate control movement. M&A act

14、ivity is carried out under certain conditions of property rights and enterprise system. In the process of M&A, one or a part of the right subject gets the corresponding benefit from the control of the enterprise o

15、wned by the transfer, and the other part then obtain this part of the control by paying a certain price. The process of M&A is essentially the process of changing the subject of enterprise rights. B. Classificati

16、ons and Motivations of M&A In terms of market regions and with regards to where the companies involved have their home base and operate, M&A could be classified as domestic or cross-border (Chen & Findlay,

17、 2003).This paper focuses on Cross-border mergers and acquisitions. The concept of enterprise cross-border M&A TABLE II. SALES OF GEELY GROUP AND VOLVO IN 2005-2009 Time Geely Group (Unit: ten thousand) Volvo(Unit

18、: ten thousand) 2005 10a 44.42006 15 42.772007 21.85 45.832008 23.34 37.432009 32.74 33.48a. Source: annual report of Geely Group and Volvo TABLE III. PROFIT BEFORE TAX OF GEELY GROUP AND VOLVO IN 2005- 2009

19、 Time Geely Group (Unit: 100 million RMB) Volvo(Unit: 100 million dollars) 2005 1.2 4 2006 2.16 -0.82007 3.07 -2 2008 8.79 -15 2009 11.79 -6.53As shown, in 2005 global sales of Geely is less than a quarter of

20、 Volvo. In 2007, it is nearly one-half of Volvo. Then Geely car makes the number of sales has been a significant growth in 2009 with independent innovation strategy and channel sink mechanism. While Volvo was affected

21、 by the global financial crisis and experiences a sharp decline in sales. As of 2009, before the merger occurred, Geely Automobile and Volvo Cars sales have been very close (Table. III). Since 2005, Geely Group’s pro

22、fit before tax doubling every year, and in 2009 it reached 1.179 billion yuan. By contrast, the Volvo Group was under annual loss since 2006 since the business philosophy rigid and unclear strategic goals, coupled wi

23、th the impact of the global financial crisis. The loss in 2008 even reached 1.5 billion dollars and became a heavy pack of Ford. B. Financial Risk Analysis 1) Financial risk in preparation phase a) Strategic decision-m

24、aking risk Before the acquisition of the world-renowned brand Volvo, the Geely Group needs to understand their existing resources and competitive advantages. At the same time, the Geely Group also needs to forecast th

25、e development trend of the entire automotive industry. Geely’s acquisition of Volvo belongs to the horizontal M&A within the same industry. Through M&A, it can expand market share in car sales and disperse th

26、e geographical risk. However, the subsequent risk of management operations and institutions overlap will get greater. Moreover, whether Volvo meets the strategic direction of the Geely Group is also very important. If

27、 Geely’s acquisition of Volvo would result in deviation from the strategic development direction, it may affect the ability to control the Geely Group. b) Valuation risk In 1999, Ford made a valuation up to $6.4 bill

28、ion in the acquisition of Volvo. Ford was operating in good condition at that time and was famous around the world. Ford hoped to improve its returns on capital and to realize the synergy effects of M&A. But thin

29、gs go crisscross. Volvo's operation did not meet expectations, and there were successive losses after the acquisition. In 2008, the loss reached $1.6 billion. Ford made preparation valued $650 million of assets de

30、valuation. This illustrates that Ford seriously overestimated the value of Volvo in the acquisition period so it caused that the actual value of the assets was less than the valuation in M&A. 2) Financial risk in

31、implementation phase a) Exchange rate risk Geely Group is exposed to the dollar, euro, and Hong Kong dollar exchange rate risk in the course of the acquisition of Volvo. Geely need to purchase of foreign exchange in th

32、e international currency markets to pay the acquisition price. Exchange rate changes would make the price of foreign exchange fluctuations, thereby reducing or increasing the cost paid by Geely in M&A. b) Financi

33、ng Risk When Geely Group plans to acquire Volvo, Volvo's losses reached $ 653 million in 2009. Volvo's valuation was reached 1.8 billion dollars, while Geely Group year profit was less than 150 million dolla

34、rs. If rely solely on internal accumulation, Geely Group needs to accumulate 15 years of retained earnings to buy Volvo. Thus Geely urgently need to design an effective financing solutions to obtain funds. c) Payment

35、risk According to annual report offered by US Ford to the Securities Industry Association, in a total of 1.8 billion dollars of the purchase price, 200 million dollars financing is provided by Ford and the remaining a

36、mount paid in cash. Geely paid a total of 761 million dollars of its own funds. The M&A began in February 2010, and completed in August 2010. Thus we have adopted a semi-annual report of 2010 of Geely Group to an

37、alyze the payment risks. From the report, we could see that after the merger, Geely Group had difficult to repay trade finance and bank loans through its own funds and experienced greater financial pressure. Geely Gro

38、up gave up 20 million ordinary shares to subscribe for the British series copper company in August, 2010, which is also the reflection that Geely Group faces financial measures after completion of the acquisition. Whe

39、n Geely Automobile (00175.HK) announced this issue, the day shares fell 0.75 percent. This reflects that market concerned about Geely Group’s cash flow to a certain extent. 3) Financial risk in integration phase For