Research On Risks Prevention Of Qingdao Haier Transnational Mergers And Acquisitions GEA

In current stage,Transnational mergers and acquisitions are flourishing around the world,and have a tremendous impetus function for the development of the world economy.In order to comply with the wave of international mergers and acquisitions,Chinese companies have gradually adopted transnational mergers and acquisitions to open up the international market,improving their core competitiveness and achieving global development strategy.However,due to the fact that transnational mergers and acquisitions of Chinese enterprises are still in the early stage of development,the experience of analyzing and preventing risks is insufficient,resulted in the success rate of mergers and acquisitions are not very high.Therefore,it is necessary to research the risk prevention of cross-border mergers and acquisitions.This article summarizes the research results of predecessors by the means of literature review and case analysis,starting from the relevant concepts and theories of corporates transnational mergers and acquisitions and M&A risks,Then takes the transnational M&A case of Qingdao Haier acquisitions GEA as an example,First,it analyzes the motivations of both parties,Then through the study of the entire process of M&A,the analysis of the risk of mergers and acquisitions is divided into three stages,the first stage is the strategic decision risk and pricing risk in the M&A preparation stage;the second stage is the exchange rate risk,financing risk and payment risk in the M&A implementation stage;the third stage is the integrated strategic risk and specific integration measures risk in the M&A integration stage,which respectively introduce the specific performance and influencing factors of Haier’s risks in the actual merger and acquisition process,analyzed Haier’s control measures to defense these risks,and evaluate the effectiveness of these risk control measures,we can know that in the preparation stage of the merger,Haier conducted a comprehensive investigation and understanding,and formulated detailed and feasible Mergers and acquisitions plan,hiring a professional intermediary agency,risk control is more effective;in the implementation phase of mergers and acquisitions,Haier introduced strategic investors,launched employee stock ownership plan to reduce financing risks,but a single cash payment method caused Haier’s cash flow a lot of pressure,and the exchange rate risk is not effectively controlled.In the M&A integration stage,Haier has formulated a “light integration” strategy to implement specific integration measures from the perspective of mutual benefit and win-win,and the risk control measures have achieved remarkable results.Next,this paper evaluates the effect of Haier’s mergers and acquisitions from three aspects: market reaction,financial indicators and non-financial indicators.It was found that the market reacted negatively in the short term,but from the performance of Haier in the medium and long term,The risk control of this M&A activity is very effective,M&A activity has been relatively successful.Finally,we draw conclusions and enlightenment trough the case,and summarize some control methods for M&A risks for Chinese enterprises,hope that enterprises could correctly treat the “double-edged sword” of cross-border mergers and acquisitions,adopt different risk control measures during different stages of M&A.From Haier’s transnational M&A cases gain experience and lessons,reduce risks and achieve strategic goals in future cross-border M&A activities.