A Hybrid Approach Using Fuzzy Comprehensive Evaluation and Grey Relational Analysis for Cross-Border Mergers and Acquisitions
Fei Li
Journal of Intelligent Computing, Vol. 16, No. 4, 2025.
DOI: https://doi.org/10.6025/jic/2025/16/4/145-155
Link: https://www.dline.info/jic/fulltext/v16n4/jicv16n4_2.pdf
Abstract:
The paper proposes a hybrid risk assessment model combining Fuzzy Comprehensive Evaluation and Grey
Relational Analysis to evaluate legal and other risks in cross border mergers and acquisitions (M&A) by
Chinese energy enterprises. It highlights that while China's overseas M&A activity has grown significantly
under the "going out" strategy, many ventures fail due to inadequate legal risk management particularly in
environmental, labor, and tax regulations abroad. The study identifies six key risk categories: market, information,
legal, industrial, integration, and financial risks. Using data from three hypothetical M&A plans,
both methods consistently rank Plan 3 as the lowest risk option. The analysis underscores that market and
integration risks are the most influential. The paper concludes by recommending thorough legal due diligence,
professional legal strategies, and robust risk management frameworks to enhance M&A success. Despite
its contributions, the author acknowledges limitations in scope and calls for more comprehensive future
research.