Case Study On Financial Risk Prevention And Control Of Midea Group's Cross-border M&A Of KUKA

In recent years,with the continuous acceleration of China's economic transformation,as well as the support of national policies for Chinese enterprises' cross-border M & A of advanced technology in developed countries,more and more Chinese enterprises participate in cross-border M & A.There are some successful cases of cross-border M & A in China.For example,Midea Group used 29.2 billion yuan to cross-border merge and acquire KUKA company;Wanda Group used to hold all shares to cross-border merge and acquire legendary American film company;Haier spent 5.58 billion dollars to cross-border merge and acquire general electric appliances;Ping An China used 1.6 billion dollars to cross-border merge and acquire automobile house;Tencent used 8.6 billion dollars to cross-border merge and acquire supercell,all of which were targeted at the target enterprises during cross-border merger and acquisition Due diligence has been carried out,relatively reasonable payment and financing methods have been selected,and corresponding financial integration has been carried out after M & A.Although there have been many successful cases of cross-border M & A of Chinese enterprises,on the whole,the failure rate of cross-border M & A of Chinese enterprises is still high.Many cross-border M & A are due to inaccurate valuation,single financing mode,failure to fully consider the financial situation of the enterprise and the actual situation of the target enterprise in terms of payment mode,and failure to fully balance the differences between the two parties.How to identify,evaluate and prevent financial risks more effectively is very important for cross-border M & A.This paper selects 2016 Midea Group cross-border M & A KUKA as a case study of financial risk prevention and control of cross-border M & A.First of all,the paper defines the research background,purpose and significance,and puts forward the research ideas,basic framework and research methods.Secondly,it collects and sorts out the relevant research results at home and abroad and makes a detailed analysis,expounds the relevant concepts of cross-border M & A and financial risk,and the relevant theories of financial risk prevention and control of cross-border M & A,which lays a theoretical foundation for the specific case analysis.Thirdly,it introduces the basic situation of Midea Group and KUKA group,analyzes the process and motivation of Midea Group's M & A in detail,and lists the possible financial risks in M & A.Finally,combined with the financial risk prevention and control measures taken by Midea Group in cross-border M & A of KUKA company,this paper expounds the prevention and control effect of financial risk of Midea Group in cross-border M & A of KUKA company,and on this basis,puts forward some financial risk prevention measures thatcan be taken in cross-border M & A of other enterprises.