The Risk Research Of Midea’s Acquisition Of Little Swan

Since1980s, china which begin Mergers and acquisitions(M&A) has got rapid development, and also has shown a wide range of quantity, the amount of large, multinational and a series of features. Guangzhou Midea Electric Appliances Co. Ltd(refer to Midea) that produce air conditioning at first has became as air conditioners, refrigerators,washing machines and other productions listed integrated company through its own development and acquisition activities, and it can have a higher market share after each M&A, Home appliance industry has almost reached a consensus:the more fully competitive industry, the more advantage the Midea can be proved.even there is a exaggerated saying:where Midea went,just like debris flow over there. Midea can able to grow a pleasantly surprised rapid. In the public view, Each acquisition will undoubtedly promote the diversification of the Midea business strategy, and brought great success. But behind the beautiful growth numbers, is there risk? Is thre the risks that can be control?In this paper, take the Midea’s resent acquisition of little swan for example, analyze the risks of this deal with the risk management ideas and principles. In this paper, there are both qualitative and quantitative analysis of risk management to do the research. From the qualitative aspects of business risk, consider the actual risk compare of the process of acqusition-related risks. From the quantitative aspects of business risk, take measurement and evaluation of the risk by using fuzzy evaluation and financial indicators. So as to get the conclusion:there is still some risk in the time-tested acquisition of Midea’s growth strategy. According to this merger, we can get some relevant inspiration.At the same time, this paper presents some recommendations. Midea should pay attention to the risks in the rapid expansion of diverse operations, and the author proposes some solutions. All in all, Midea need find the balance point in the interests of enterprises, shareholder value and long-term development,in order to get rapid development steadily and become a permanent appliance industry giants eventually.