Study On Financial Risk Of Overseas Mergers And Acquisitions Of Chinese Household Electrical Appliance Enterprises

Overseas mergers and acquisitions have gradually become one of the important ways for enterprises to internationalize with the development of economic globalization.Since the 19 th century,there have been six large-scale mergers and acquisitions in the world.The first overseas mergers and acquisitions of China began at the end of the 20 th century.Although it started late,its position in the international mergers and acquisitions market has gradually improved after many years of development,especially in the industry of household appliances.However,due to the lack of experience and policy constraints in mergers and acquisitions in China,enterprises have faced many financial risks and difficulties,which results in a low success rate of overseas mergers and acquisitions.For the previous events of mergers and acquisitions,it has shown that financial risks have a significant impact on the success rate of overseas mergers and acquisitions.Therefore,it is necessary to study and discuss the related issues about financial risks of overseas mergers and acquisitions.Through the research of HM Group's overseas mergers and acquisitions,it positively analyses and discusses how to avoid the financial risk of overseas mergers and acquisitions of household appliances enterprises in this paper.On this basis,it will provide some experience and lessons for domestic appliance enterprises to make overseas mergers and acquisitions in the future.In this paper,it combines theoretical analysis with case analysis,chooses typical cases of overseas mergers and acquisitions of Chinese household appliances enterprises based on relevant theoretical knowledge of mergers and acquisitions,that is,HM Group which makes mergers and acquisitions of TD Company,so as to study and discuss the financial risks that may encounter in the process of overseas mergers and acquisitions.On the basis of consulting relevant literature at home and abroad,it expounds the concept,characteristics and motivation of overseas mergers and acquisitions in detail,and then expounds the related concepts and characteristics of financial risk of overseas mergers and acquisitions in this paper.At the same time,it divides the financial risk of overseas mergers and acquisitions into strategic decision-making risk and value evaluation risk in the preparation stage,financing risk,foreign exchange risk and payment risk in the implementation stage,financial integration risk and operation risk in the integration stage.In addition,it also makes a detailed analysis of overseas mergers and acquisitions of Chinese household appliances enterprises,which mainly involves the status quo,characteristics,problems and the causes of related financial risks of overseas mergers and acquisitions of Chinese household appliances enterprises.Based on the above theory,it selects the case of HM Group's mergers and acquisitions of TD Company in this paper,and compares the profitability,solvency,operating ability and development capability of HM Group before and after the mergers and acquisitions,which can make us further understand the motivation and potential financial risk of enterprises' overseas mergers and acquisitions.Finally,it analyses the relevant measures taken by HM Group to deal with financial risks,and puts forward some feasible preventive measures for other household appliances enterprises in view of the financial risks in overseas mergers and acquisitions.