The Analysis On Financial Risk Of Overseas Merger And Acquisition Of Household Appliance Enterprises

Under the trend of economic globalization,Chinese enterprises have invested in the outside world.After more than 20 years of development,the transnational merger and acquisition of Chinese enterprises has begun to take shape.The successful merger and acquisition will bring huge profits to the enterprises,open up the international market,and lay a solid foundation for the development of the enterprises' internationalization.On the contrary,failed mergers and acquisitions will restrict the operation and development of enterprises,and may cause significant losses to enterprises.At present,the transnational merger and acquisition of Chinese enterprises has ushered in new development opportunities according to the statistics of PWC.In the first three quarters of 2015,the number of mergers and acquisitions of Chinese enterprises was 257,the transaction amount was up to 45 billion 200 million US dollars,which exceeded the total number of transactions in 2014,set a new high,and more and more enterprises under the wave of overseas merger and acquisition.The industry will shift its strategic objectives to overseas markets,hoping to enhance the international competitiveness of enterprises through transnational market and occupy a place in the world economic market.A survey of the transnational merger and acquisition of Chinese enterprises shows that the scale of cross-border mergers and acquisitions is increasing,but less than half of the cases can be achieved by the expected effect,which means that enterprises want to achieve development through overseas mergers and acquisitions,and will inevitably take on more risks.Cross border M & A is a double-edged sword,while obtaining high returns is accompanied by high risk.In view of the history of mergers and acquisitions at home and abroad,although the enthusiasm for mergers and acquisitions continues to rise,the failure of mergers and acquisitions has occurred frequently,many enterprises in the process of mergers and acquisitions in the process of serious losses,and even bankruptcy.Many enterprises' decision-makers only see the opportunities brought by transnational mergers and acquisitions to enterprises,but ignore the risks in mergers and acquisitions,especially financial risks.This paper mainly studies the financial risks faced by enterprises in cross-border mergers and acquisitions.First of all,the research background and status ofcross-border mergers and acquisitions and the literature on financial risks in mergers and acquisitions are summarized.Secondly,it explains the basic definition types of M& A,the definition types of M & a risk,and analyzes the motivation of M & A.Then it introduces the deposit risk,financing risk,payment risk and integration risk which Haier may face in the process of merging general electrical appliances.At the same time,it puts forward some measures to prevent the occurrence of risk.Finally,it summarizes the content of this study and draws a conclusion.