Research On Financial Risk Control Of Qingdao Haier's Acquisition Of General Electric Appliances

Since the beginning of the 21 st century,Chinese enterprises have become an important subject of cross-border m&a.Both the total amount of m&a and the number of m&a cases have been greatly increased.According to statistics from pricewaterhousecoopers,in 2016,the number and amount of cross-border mergers and acquisitions of Chinese mainland enterprises reached a record high,with the number of transactions reaching 923,up 142% year on year,and the amount of transactions reaching 221 billion dollars,up 246% year on year,exceeding the total amount of cross-border mergers and acquisitions of Chinese mainland enterprises in 2012-20154.In 2017,due to regulatory restrictions on irrational mergers and acquisitions,the total number of cross-border mergers and acquisitions by Chinese enterprises decreased,but the number of mergers and acquisitions still reached the second highest level in history.In 2018,Chinese enterprises returned to rationality in cross-border mergers and acquisitions,and the number and amount of mergers and acquisitions decreased,but they still occupied a high share in the global cross-border mergers and acquisitions market.Chinese enterprises transnational mergers and acquisitions activity in the booming at the same time,also faces very serious challenge,global cross-border m&a cases in the past,only less than 50% of m&a can achieve the desired effect,and because our country enterprise merger and acquisition activity development relatively late,lack of experience,is currently only in the exploration period,higher failure rate of transnational merger and acquisition,to the success of probability is less than 30%,is an opportunity for our country enterprise of transnational m&a,is also a challenge,a merger and acquisition activity of politics,economy,culture,law,policy,information and other factors will affect the financial cost of the merger and acquisition activity in each link,Finally reflected in the company's financial risk.Therefore,this paper takes the acquisition of general household appliances by Qingdao haier as the research target,analyzes the different financial risks faced at different stages of the merger and acquisition process,and explores the countermeasures for financial risks at different stages with the support of relevant theories and data,so as to provide practical guidance for Chinese enterprises' cross-border merger and acquisition activities.In June 2016,Qingdao haier spent $5.58 billion to acquire American general appliances.In the process of acquisition,haier was faced with huge financial risks.In this paper,haier's acquisition of American general home appliances,the largest cross-border acquisition case in China's domestic home appliance industry so far,is selected to conduct an in-depth study on the financial risk of Qingdao haier in the process of cross-border acquisition.At the same time,the control measures and control effects are analyzed based on relevant data.The research results show that: Qingdao haier has taken corresponding risk control measures for the acquisition of general home appliances,and effectively controlled pricing risk,payment risk and integration risk.However,there are still some shortcomings in the control of financing risk,which reduces the solvency and increases the difficulty of refinancing.However,in the long run,this merger and acquisition,after good integration,gradually gives play to its synergy advantages and realizes Qingdao haier's international strategic layout.