Research On The Risk Of Cross Border M&A In China’s Household Electrical Appliance Enterprises

Now China’s household Electrical Appliance industry overcapacity,fierce competition,in order to seek a new development path,the major appliance enterprises began to carry out cross-border mergers and acquisitions.But the cross-border merger and acquisition is a complex process,facing a variety of risks,companies can successfully avoid the risks directly determine the success of the enterprise cross-border merger and acquisition.Because China’s household electrical appliance enterprises began to cross-border mergers and acquisitions in recent years,started late compared with western countries,the practice results are relatively few,theoretical research is not very mature,so when China’s household electrical appliance enterprises can find in the risk analysis of cross-border mergers and acquisitions may encounter when the data is relatively small,many household electrical appliance enterprises in cross-border mergers and acquisitions did not identify the full risk that may be encountered in the process,thus failed to take corresponding measures,leading to the failure of mergers and acquisitions.This article is in this context of China’s household electrical appliance enterprises The risk of cross-border mergers and acquisitions.In this paper,through using the method of literature research and case analysis,to research on China’s household electrical appliance enterprises transnational merger and acquisition risk,this paper can be divided into four aspects:first,the purpose of China’s household electrical appliance enterprises based on the research background,significance,basis and relevant theory,the cross country cross-border merger and acquisition and the related risk described to provide a theoretical basis for the next part of the case writing.Secondly,a brief description of the status quo of China’s household electrical appliance enterprises transnational mergers and acquisitions,including the characteristics of our household appliances industry cross-border mergers and acquisitions,cross-border mergers and acquisitions in the cause and problems.Then,analysis and selection of Haier’s acquisition of GE appliance business case,because the merger occurred in June 2016 therefore,it has a strong timeliness,this paper mainly analyzes the possible risks involved in the process of the cross-border mergers and acquisitions,and the risk analysis system,It is not just a simple list,further concluded that the risk of China’s household electrical appliance enterprises transnational mergers and acquisitions may be faced,puts forward some risk prevention suggestions and opinions.And based on the merger and acquisition to guard against the risk of acquisition measures were also analyzed,and provide reference for other household electrical appliance enterprises can plan cross-border mergers and acquisitions of course.In the process of enterprise cross-border mergers and acquisitions not only face the risk mentioned in this paper,there are many other risks,but because of space limitations,this paper only analysis the process of enterprise cross-border mergers and acquisitions risk than the more common,and because the available information is limited,so the author may be lacking in cross-border mergers and acquisitions activity analysis of the enterprise.In this paper,the risk prevention measures are mainly presented in the perspective of China’s household electrical appliance enterprises,however,really want to resolve the risks that China’s household electrical appliance enterprises in cross-border mergers and acquisitions faced,not only need their own efforts,also need the support of the national laws and policies and the support of the community,this paper deserves further research in the future.