Research on Financial Risks and Compliance Challenges in Cross-Border Mergers and Acquisitions

Abstract

With the acceleration of global economic integration, cross-border mergers and acquisitions (M&A) have become an important strategic tool for companies to expand international markets and optimize resource allocation. However, the complexity and uncertainty of financial risks and compliance issues in the process of cross-border M&A pose significant challenges to the success of M&A transactions. This paper systematically analyzes the main types of risks and their interactions in cross-border M&A from the perspectives of financial risks and compliance. Through specific case studies, this paper reveals the constraints imposed by the legal systems, tax policies, and antitrust laws of different countries on the success of M&As and proposes effective risk management and compliance control strategies. The research findings indicate that financial risks and compliance risks in cross-border M&A are interrelated, and companies should consider both types of risks in the M&A decision-making process. By establishing an effective risk management framework and compliance review mechanism, companies can reduce the likelihood of M&A failure. This study provides a theoretical basis for risk management and compliance control in cross-border M&A and offers guidance for M&A decision-makers in practice.