Research On The Integration Risk Of Overseas Merger And Acquisition Of Household Appliance Enterprises

The household appliance industry has formed a mature market competition environment,where the competition between domestic enterprises is very intense.Its industry characteristics determine the inevitability of household appliance enterprises to open the international road.Therefore overseas M&A have become a powerful mean for household electrical appliance enterprises to improve the technical level and gain market resources.Overseas M&A is the most complex and difficult form of international investments,which take political,economic,legal,financial and operational risks.Companies who are merged have different cultural backgrounds and management mechanisms must have differences in management ideas and business operations,thus integration is the key to the success of M&A.To make the effect of overseas acquisitions 1+1>2,we must pay attention to the control of integration risk in M&A.The existing studies of the risk of overseas M&A integration risk rarely use quantitative methods because the data is difficult to obtain and the definitions of risk factors are respectively different.This paper uses case analysis method,combined with AHP and Delphi method,to qualitatively and quantitatively analyze the integration risk of overseas M&A in household appliance enterprises,which can provide some references for overseas M&A of household appliance industry.Based on the M&A integration theory and risk management theory,this paper focuses on the analysis of the overseas M&A in Chinese household appliance industry,mainly on the analysis of the various risks in the process of overseas M&A integration,establishes the risk hierarchy of overseas M&A and uses AHP method to quantitatively analyze various risk factors to obtain the weights of various risk factors on the effect of overseas M&A integration.After that,this paper analyze the case of Haier acquires GEA.Firstly,it theoretically analyzes the overseas M&A integration risks,and then uses the AHP to verify the conclusions.Finally,according to the analysis results,this paper puts forward measures for the Chinese household appliance industry to prevent and control the overseas M&A integration risk.The study has found that the overseas M&A integration risk of household electrical appliance enterprises consists of macro-level and micro-level risks.Among them,the political and legal risks,the strategic integration risk and the business integration risk are the main risks.The organizational structure and management integration risk,human resource integration risk and social humanistic risk are secondary risks.And the financial integration risk,the culture integration risk and the economic risk are not as important as the main risks.This paper puts forward four effective risk prevention and control measures:develop effective strategic integration plan,attach importance to the management innovation,achieve financial management integration and seeking common ground on the basis of full communication.All these measures can deal with overseas M&A integration risk of household electrical appliance enterprises.