Discuss the advantages and disadvantages of cross-border mergers and acquisitions.

A: Cross-border M&A refers to the legal acquisition of all assets or shares of an enterprise in the host country through certain procedures and channels, and has now developed into a major way to set up overseas enterprises. Compared with the new enterprise model, the advantages and disadvantages of cross-bacterial mergers and acquisitions are as follows.

(1) The advantages of cross-border M&A are as follows: ① You can use the existing production equipment, technicians and skilled workers of the target enterprise to obtain intangible assets such as technologies, patents and trademarks that are useful for the development of M&A enterprises, and at the same time you can shorten the construction period of the project. ② You can use the original sales channels of the target enterprise to quickly enter the markets of the host country and other countries without going through a difficult market development stage. (3) Cross-industry M&A activities can rapidly expand the business scope and location, increase business methods, and promote the diversification of products and the expansion of production scale. ④ It can reduce competitors in the market. ⑤ Selling shares or assets of the target enterprise after M&A can generally make M&A enterprises gain more profits.

(2) The disadvantages of transnational M&A are as follows: ① Because the accounting standards and financial systems of the host country are often different from those of the investing country, it is sometimes difficult to accurately evaluate the real financial situation of the target enterprise, which leads to an increase in the actual investment of M&A. (2) The restrictions imposed by the anti-monopoly law of the host country on foreign equity and the industries in which the merged enterprise is located are legal and policy obstacles to M&A's behavior. ③ When M&A has a large amount of money to the host country, it will often be resisted by local public opinion. (4) The original contract or traditional relationship of the target enterprise will become an obstacle to its transformation, such as the personnel placement of the target enterprise.