Research On Identification And Prevention Of Financial Risk Of Hisense M&A Toshiba

Mergers and acquisitions of enterprises have gone through more than 30 years of development in our country.In recent years,mergers and acquisitions have developed even more vigorously,not only in the increasing number of transactions,but also in the increasing amount of transactions,and the scale of enterprises of both sides of mergers and acquisitions is also growing.With the development of globalization,the cases of transnational mergers and acquisitions also grow.However,with the rapid development of M&A,the results are not always successful.Merger and acquisition is a strategy and decision-making for enterprises to go global,and there are certain risks.Because it involves the merger of two enterprises,mergers and acquisitions are relatively complex and require a large amount of capital.Merger and acquisition is a major decision for enterprises,which also means that there are many risks in an enterprise merger and acquisition.If the risks arising from M&A are not controlled and prevented,it will lead to the failure of M&A.Therefore,it is necessary for both sides of M&A to identify and guard against various risks in the process of M&A so as to minimize risks and improve the success rate of M&A.Among the many risks faced by M&A,the financial risks involving large amounts of capital are the most important,which need to be paid more attention by enterprises.This paper first introduces the background of overseas mergers and acquisitions,expounds the purpose and significance of this study,reviews the current situation at home and abroad,the content of the study and the methods used,leads to the enterprise background for the following analysis and Research on the merger and acquisition of Toshiba image of Haixin Electric Appliances,clarifies the purpose and significance of this study,provides the methodological basis,and constructs the research structure;secondly,introduces enterprises.The types of industry mergers and acquisitions,combing the related concepts of financial risk and prevention of enterprise cross-border mergers and acquisitions,lay a theoretical foundation for the following case studies.This paper expounds the background and implementation of the merger and acquisition of Toshiba Image by Haixin Electric Appliances.Including the introduction of both sides of M&A,development history,current situation,reasons for M&A,etc.Thirdly,based on the financial risk theory and the current research situation at home and abroad,the background and implementation of the M&A of Haixin Electric Appliances Toshiba image are comprehensively identified and analyzed from three aspects: pricing risk,payment risk and integration risk,in order to achieve a more comprehensive reflection.This merger and acquisition brings risks to enterprises,thus drawing a relatively more comprehensive conclusion.Finally,on the basis of summing up the experience of risk prevention in the merger and acquisition of Toshiba image by Haixin Electric Appliances,and combining with the relevant theory of risk prevention in merger and acquisition,the paper actively puts forward the countermeasures and suggestions for the financial risks in the future merger and acquisition of enterprises.The last chapter summarizes the whole paper and looks forward to it.Through identifying the financial risks in the process of Haixin Electric Appliance's M&A of Toshiba,we can see that there are three main types of risks in M&A: the pricing risk of the target enterprise,the payment risk of the merger party and the financial integration risk in the later period of M&A.Through the analysis of the process of merger and acquisition of Toshiba image,it is concluded that Haixin Electrical Appliances has carried out a detailed in-depth investigation of the target enterprise Toshiba image,selected a more reasonable evaluation method of Toshiba image,flexible use of payment methods and scientific financial integration to reduce risks.It can be said that the overall risk prevention of the acquisition of Toshiba Image by Hitachi Electric Appliances is of reference significance.