Study On Financial Risks Control Of Chinese Enterprises' Overseas Mergers And Acquisitions

With the constant improvement of China's economic development and further deepening of opening to the outside world,more and more Chinese enterprises have chosen to go out and merge into the waves of overseas mergers and acquisitions.Although the quantity and amount of overseas M&A transactions have continued to rise,reports on the Chinese companies' failures of overseas M&A are a common occurrence at the same time,which indicates that risks in overseas M&A,especially financial risks are all over.Consequently,how to control the financial risks in overseas M&A is worth intensive studying.However,theoretical study is not enough.In this sense,the core issue of this paper is how to effectively control the financial risks occurred in the real overseas M&A transactions.First and foremost,this article gives a comprehensive overview about the literature related to overseas M&A and overseas M&A risk control.In the process of reading the related literature,the author found that most of financial risk control of overseas M&A focus on the theoretical level,thus making intensive study on how to control financial risks in real overseas M&A activities worthwhile.Therefore,on the basis of a thorough understanding about the financial risks of overseas M&A and overseas M&A,this article gives an overview about the relevant theories of overseas M&A motives and risk control.Starting with the current situation of Chinese enterprises' overseas merger and acquisition,taking the event of Qingdao Haier group M&A as the research object,this paper summarizes the financial risks faced by Qingdao Haier group from the three stages of preparation,execution and integration in M&A,and conducts a further study on this basis,analyzes the overseas merger and acquisition in detail.And to figure out Qingdao Haier group is how to carry out financial risk control within each stage,and accordingly summarizes the specific measures so as to help our enterprises to control financial risks in the future overseas merger and acquisition activities.The results show that,on the whole,the financial risks of Qingdao Haier group have been effectively controlled during the process of M&A,and the merger and acquisition transaction has been successfully completed.However,in the phase of merger and acquisition,Qingdao Haier group is lack of sufficient understanding about the financial risks caused by changes in foreign exchange.Although it does not cause economic loss to the enterprise,Qingdao Haier group should be vigilant to the foreign exchange risks,which is also a matter that other enterprises should pay attention to in the future overseas merger and acquisition activities.In general,the control of the financial risks of Qingdao Haier group is of reference to other enterprises.In terms of how to effectively control the financial risks of overseas mergers and acquisitions is also necessary for us to take in-depth research.In a word,to promote the healthy development of China's overseas M&A market,the combination of theory and practice is a must.