Research On Financial Risk Control Of Haier Group In Cross Border Mergers And Acquisitions

Chinese enterprises have grasped the opportunity of economic globalization and began to vigorously carry out cross-border M&A activities.Although cross-border mergers and acquisitions of Chinese enterprises are surging,the results are rather grim.It is inseparable from financial activities in cross-border mergers and acquisitions,but financial activities are bound to cause financial risks.Therefore,the study of financial risk control in cross-border mergers and acquisitions can reduce the financial losses of enterprises and improve the success rate of cross-border mergers and acquisitions.At present,Haier group is the first enterprise of white goods in the world.In 2017,its brand share rose to 10.6%in the home appliance market and the ninth in the world.This is also a result of many transnational mergers and acquisitions that Haier group has participated in.The paper takes the financial risk of the three transnational merger and acquisition activities of Haier group and how to control it,and introduces the background of Haier group,the situation of SANYO,fibonnet and general electric appliance in the merger and acquisition,the motivation of the merger and acquisition of the Haier and the results of the merger and acquisition,and take the methods of literature analysis,case study and comparative analysis.To identify and evaluate the financial risks faced by Haier group during each merger and acquisition,and to analyze the financial risk control.With the help of the related theories of financial risk control,the paper summarizes the success of the financial risk control of the Haier group in transnational mergers and acquisitions,including the choice of gradual merger and acquisition,the investigation of professional teams,and the formulation of remittance.The rate risk control scheme and the integration method are basically appropriate,and the shortcomings include the radical pricing of M&A,the unreasonable valuation mode,the lack of financing channels,the single payment mode and the lack of agreement on the strategic integration,and the inspiration from it is drawn so that the Haier group can improve the financial risk control in the future transnational merger and acquisition activities.The purpose of this article is to hope that Haier group will continue to improve its position in the international market,enhance its competitive power and increase the success rate of cross-border mergers and acquisitions.At the same time,it can also serve as a reference for the financial risk control activities of Chinese household electrical appliance enterprises in transnational merger and acquisition,control the financial risk of transnational merger and acquisition,realize the value of transnational merger and acquisition,and prepare for the future Chinese household appliance enterprises to go out of the country and realize the globalization operation.