Research On Financial Risk Of Cross-Industry M&A

Over the past thirty years since China's reform and opening up,due to the steady development of the market economy,China's economy has been making progress.As the strength of Chinese enterprises continues to increase,most enterprises have startedcross-sectoral mergers and acquisitions to upgrade their scale and expand into other areas.With the promotion of China's reform and opening up policy,most of the enterprises in our country have started their own road to restructuring so as to adjust their own industrial structure and broaden their prospects for business development.With the constant adjustment of the economic structure,many Chinese enterprises have seized this opportunity of low investment and high return to implement M&A activities.However,the financial risks may exist in every financial activity arising from M&A activities.The identification of these financial risks and the timely and effective prevention and control measures will become the determinants of the success of M&A.As one of the large-scale enterprises in China,Midea Group also started the path of M&A and M&A mergers and acquisitions are also important steps in its transformation and upgrading.By studying the domestic and international literature about mergers and acquisitions and the research results of other scholars at home and abroad,we classify the financial risks that may exist in all aspects of M&A and make various financial risks that may arise in M&A events analysis.On the basis of these theoretical analysis,taking the case of Mikko's acquisition of KUKA as its research objective,according to the motivations and processes of mergers and acquisitions between China and the United States,and the identification and prevention and control of relevant financial risks,a corresponding introduction and analysis will be made.In the overall process of M&A,a comprehensive study has been conducted on the four main risks that may arise from the preparation stage to the consolidation stage.Based on the comprehensive Z-value analysis model widely adopted by western developed countries,this paper makes a comprehensive assessment on the financial risk in this M&A and summarizes the measures taken by Midea Group in the risks arising from this M&A activity.At the end of the article,the case of Zhongmei Group made suggestions on where the prevention and control of financial risks could be strengthened,and summarized the implications of this case on the prevention and control of financial risks.Through this group's mergers and acquisitions with the KUKA Group as the target company,KUKA Group has also provided more advanced technology for the United States while also broadening the development prospects of the US Group.Through the analysis of the case of the United States and KUKA,the existing M&A risk is further verified and deepened with a view to gain some experience in the prevention and control of M&A risk and to provide a platform for other enterprises to identify and deal with financial risks in the subsequent M&A activities Provide some lessons to learn from.