A Study On Financial Risks And Prevention Of Cross-border Mergers And Acquisitions Of Household Appliances Enterprises In China

In the wake of the financial crisis in 2008,countries all over the world began to pay attention to the manufacturing industry again in order to find a new way to stimulate economic growth.In 2014,China put forward the "Made in China 2025" strategy.Faced with increasingly fierce international competition,Chinese home appliance manufacturers have initiated "going global" strategy.However,the results of crossborder M & A of household electrical appliance enterprises are not satisfactory,many mergers and acquisitions performance decline,falling profits,increased debt risk,and some get involved in a huge amount of claims risk.Looking at a large number of cases,we found that the target company valuation is inappropriate,improper financing methods,capital strand breaks.M & A integration failure brought about by the financial risk have seriously affected the success of cross-border M & A of household electrical appliance enterprises.This thesis summarizes and concludes the relevant articles at home and abroad from the point of view of the financial risk of overseas M & A.Based on the basic concepts and financial risk theory of overseas M & A.,identify the financial risk of cross-border M & A of household electrical appliance enterprises in phases as the theoretical basis,and analysis Midea Group acquisition of Kuka 's case to the perspective of financial risk,and then a series of measures to control financial risk in response to the consolidated financial risk faced by the household electrical appliance enterprises.Through the research,this paper draws the following conclusions: In order to effectively prevent the financial risks of overseas mergers and acquisitions,Chinese household electrical appliance enterprises should establish a risk prevention system.First of all to improve the information asymmetry,in order to reduce the pricing risks faced by enterprises;in the M & A decision-making,we should pay attention to the future potential of the target enterprise to assess;in the enterprise financing,you can choose a variety of financing channels,Financial structure,to ensure the rationalization of financing structure;according to the cash flow situation,capital structure,ownership structure,etc.,the use of flexible and diverse payment methods to minimize the assetliability ratio;M & A decision-making emphasis on the possible integration of the latter part of the problem,Design a viable integration plan.Hope that through the Haier Group for overseas mergers and acquisitions case,sum up experience lessons learned to improve our home appliance industry overseas M & A financial risk prevention capabilities in the process of mergers and acquisitions to understand and understand the risks at the same time,the development of scientific and rational operation of strong overseas mergers and acquisitions Financial risk prevention measures to optimize the effect of overseas mergers and acquisitions to achieve synergies.