A Study On The Financial Risks And Prevention Of Chinese Enterprises' Overseas M&A

With the continuous development of economic globalization and the continuous advancement of resource globalization,more and more companies want to “go global” to expand their living space and enhance capital utilization.Therefore,overseas mergers and acquisitions have become an important means.Chinese enterprises have also actively participated in the wave of overseas mergers and acquisitions.M&A involves a wide range of fields,from energy,automobiles,and home appliances to Chinese companies.The purpose of M&A is also from market share,brand ownership,and access to core technologies.In recent years,Chinese companies have also played an important role in overseas mergers and acquisitions.From TCL's acquisition of Thomson,Midea's acquisition of Toshiba and a series of overseas mergers and acquisitions,Chinese companies play an important role in overseas mergers and acquisitions,and overseas acquisitions also help Chinese companies achieve global Development strategy.In the history of overseas M&A,there are not many successful cases.According to statistics,about 70% of global M&A deals will fail.Chinese companies' overseas mergers and acquisitions are still in the initial stage,and M&A experience is relatively insufficient,so the failure rate of mergers and acquisitions is even higher.People often discuss many of the benefits of M&A,but they do not discuss the risks of mergers and acquisitions.They even stay in the theoretical understanding.Therefore,the study of overseas mergers and acquisitions financial risk and prevention has attracted the attention of experts from various countries around the world.Therefore,what kind of risk will the Chinese companies face when they conduct overseas mergers and acquisitions,and what kind of countermeasures are there for these risks? This article mainly focuses on these issues,and then carries out systematic research on the acquisition of Qingdao Haier.It is hopeful to answer these questions.This article takes Qingdao Haier's acquisition of general-purpose household appliances as an example,adopts a combination of literature research and case study methods,and reads overseas financial literature on financial risk related mergers and acquisitions,and based on overseas mergers and acquisitions financial risk theory,based on the merger of Qingdao Haier's acquisition of general home appliances.Cases,starting from the causes of risks and supported by various indicators such as solvency and profitability,conducted an in-depth study on Qingdao Haier's overseas mergers and acquisitions preparation,implementation and post-merger integration phase of the financial risks,and analyzed Qingdao Haier's mergers and acquisitions.The financial risks that may exist in the three stages of the company,and put forward a series of measures to prevent financial risks,which will help our country's other companies to gain experience and lessons.Through the analysis of the case,this article believes that Haier has adopted appropriate financial risk prevention measures in the preparation and integration phase of mergers and acquisitions,but did not take appropriate precautionary measures to deal with exchange rate risks in the implementation stage of mergers and acquisitions.There are also slight precautions against financing risks.Lacking.It is hoped that this paper will provide lessons for China's other companies on the issue of overseas mergers and acquisitions financial risks and provide lessons for them.