Research On Financial Risk Control Of Merger And Acquisition In Household Appliance Industry

Under the background of economic globalization,Merger and acquisition(M&A)has become an important way for enterprises to expand their business scale and compete for market share.According to PricewaterhouseCoopers analysis,since 2001:the number of M&A transactions in China has begun to show astate of obvious increase,but by 2010,the number of M&A cases has reached 2771:an increase of 13.8%over the previous year.In 2018,the number of M&A transactions of domestic enterprises reached 4778:an increas e of 7%over 2017.Among many M&A cases,the M&A between household appliance enterprises accounts for alarge proportion,in order to improve their own business.Performance,so that the value of enterprises to grow,continue to improve competitiveness through mergers and acquisitions.During 2008,midea.M&A Little Swan has become one of the top ten classic M&A cases.However,although M&A cases are completed on schedule,the risk of mergers and acquisitions is worthy of consideration by the furniture industry.This paper takes the literature investigation method the case analysis method and the quantitative and qualitative combination analysis method as the research methods:through the classical case analysis of the merger and acquisition of the United States,to understand the financial risks of the household appli ances industry in the process ofmergers and acquisitions.This paper first looks up the relevant literature on the financial risk of M&A from the library and the network.On this basis:this paper also introduces the concept of M&A and the related concepts of M&A financial risk,and takes the theory of M&A motivation as the theoretical basis of this paper to analyze the present situation of M&A in domestic household appliances industry.In order to make this study more representative,this paper chooses the case of the merger and acquisition of Little Swan as the case of the United States.This paper studies the case,expounds the process of M&A:identifies all kinds of risks existing in M&A activities:constructs the corresponding risk evaluation system,evaluates all kinds of risk indexes by using analyt ic hierarchy process(AHP)and comprehensive fuzzy evaluation method,understands the occurrence probability of all kinds of risks in M&A activities of household appliances enterprises,and clarifies the formulation of risk management and control measures in this way.Finally,this paper expounds the control countermeasures of M&A financial risk from four aspects:pricing risk,fmancing risk,payment risk and integration risk,hoping to improve the financial risk management level of M&A activities of household appliance enterprises.The above research shows that the enterprise needs to carry out the evaluation of the target company and evaluate the possible financial risks,so as to formulate a reasonable financial management control strategy in order to reduce the probability of risk occurrence and reduce the risk loss.