Reasons for the rapid growth of overseas mergers and acquisitions of China enterprises

1, supported by the government

China municipal government now very much hopes that China enterprises can go out.

2. Idle funds

With the downturn of the property market and the stock market, some rich people have a lot of idle funds and can't find suitable investment channels.

Step 3 reduce costs

The labor cost in China is increasing. In contrast, many foreign resources and costs are very low.

4. Immigrant demand

Many people in China emigrated, some of whom emigrated through investment. Even if you are not an investment immigrant, if you have your own industry abroad, it is what many people dream of.

5. Buy a shell and go public

Some enterprises in China achieve the purpose of overseas listing by purchasing sea shells, which reduces a lot of complicated procedures and cultural integration and reduces costs.

6. Strategic development

For example, Lenovo acquired IBM and Geely acquired Volvo.

7. Review of M&A

European sovereign debt crisis, the downgrade of huge deficit debt in the United States and the global economic downturn, at this time, the consideration cost paid for mergers and acquisitions is low.