Financial Risks And Prevention Of Midea Cross-border M&A KUKA

With the saturation of the domestic market and the government's vigorous implementation of the "go global" policy,many Chinese local companies are exploring overseas development opportunities.There are many Chinese companies doing business globally,such as Huawei Technologies and ZTE in the telecommunications equipment industry,Haier and Midea in the home appliance industry,and Lenovo in the PC industry.In addition to these large companies,more and more hardware startups are actively exploring overseas markets.However,in the past 20 years,the success rate of mergers and acquisitions has been lower than the high rate of overseas mergers and acquisitions.The failure rate of overseas mergers and acquisitions of Chinese companies exceeds 65%,which fully shows that there are still many risks in overseas mergers and acquisitions.Therefore,it is important to analyze and control the financial risks of overseas mergers and acquisitions.This article is structured to ask questions,analyze problems,and solve problems.Use case analysis method to combine theoretical knowledge with typical cross-border mergers and acquisitions-Midea mergers and acquisitions and German KUKA.Qualitatively,according to the time of Midea's M&A process,M&A risks are divided into pre-M&A pricing risks and financing risks,payment risks and exchange rate risks in M&A transactions,and integration risks after M&A,and the causes of each risk are discussed.s reason.From a quantitative perspective,the main financial indicators of Midea Group are used to analyze and evaluate the effectiveness of the risk control measures acquired by KUKA.Secondly,based on the measures taken by Midea Group to deal with financial risks at various stages of mergers and acquisitions,a rationality assessment is made and supplements are provided for the shortcomings of the measures taken.Finally,combined with the above analysis,this article proposes the corresponding enlightenment for the financial risk of cross-border mergers and acquisitions in the electrical industry: reasonable arrangements for financing structures—widening channels,diversified financing,flexible use of multiple payment methods,and focusing on post-merger acquisitions.Integration efforts,and to make good use of the power of professional institutions to improve the ability of Chinese companies to control their cross-border mergers and acquisitions risks,and will have a normal impact on cross-border mergers and acquisitions.