Qingdao Haier M&a General Electrical Appliances Financial Risk Evaluation And Control Case Study

Home appliance industry has formed a relatively mature environment for market competition——the competition is fierce among the domestic enterprises and the overseas M&A has become an important approach to improve the level of technology and obtain market resources.However,the success rate of overseas M&A in its global history is low,and without enough experience,the success rate of Chinese enterprises M&A is lower.There are too much financial crisis in the process of M&A,this is the main factor of leading M&A to failure.In June 2016,Qingdao Haier spent $5.576 billion on acquisitions for General Electrical Appliances(GEA).At the mean time,Hair was facing the huge financial risk.Therefore,this thesis uses the biggest merger cases of domestic home appliances to evaluate the financial risk,then through the analysis of Qingdao Haier control measures and deficiencies in financial risk,the thesis summarizes the revelation ofthe financial risk in M&A.Firstly,in this thesis,the previous research results are summarized by literature review,and the evaluation and control research on financial risk of overseas M&A are sorted out,these provides theoretical support for the case analysed latter.Secondly,with abundant data in the method of case analysed,the thesis proceeds a thorough research to the General Electrical Appliance case of Qingdao Haier M&A.Making financial risk as the entry point,the thesis identifies General Electrical Appliances faced by Qingdao Haier M&A financial risk;and it analyses all kinds of hazards by using analytic hierarchy process so as to weight the influences of those for enterprises overseas M&A;then with the fuzzy comprehensive evaluation method,the thesis gives an evaluation of the risks in pricing,financing,debt repayment and integration of Qingdao Haier.It is concluded that the pricing risk and financing risk are at the general level,the debt service risk and integration risk are generally at the high level,and the overall risk is at the medium level;at last,it shows Qingdao Haier's control measures and existing deficiencies in the acquisition of financial risk.At the end of this paper,the author puts forward corresponding revelations according to the risks.Such as enterprise should guarantee the evaluation of the authenticity of the data,the combination of qualitative and quantitative dynamic evaluation,select the appropriate evaluation method,broaden the financing channels,optimize capital structure,reduce the cost of refinancing for liquidity risk management,effective integration plan,set up financial risk early warning mechanism,etc.So as to provide some references for overseas M&A in China's home appliance industry.