Research On Motivation And Risk Of Overseas M&A Of Household Appliance Enterprises

In recent years,more and more household appliance companies in my country have carried out overseas mergers and acquisitions.Overseas mergers and acquisitions can not only acquire the relevant technology of the target company,improve the company’s internal research and development capabilities,but also expand their overseas markets and improve their competition in the international market.force.Although mergers and acquisitions can bring benefits to home appliance companies,according to Mc Kinsey’s statistics in recent years,the failure rate in overseas mergers and acquisitions is more than two-thirds.Insufficient attention to overseas mergers and acquisitions risk management may be an important reason for the failure of mergers and acquisitions.The risk factors of various stages of overseas mergers and acquisitions and the management and control of them have become a problem that more and more companies need to solve.This leads to the question studied in this article: What are the motivations for overseas mergers and acquisitions of my country’s home appliance companies? What are the risks of failed overseas mergers and acquisitions for home appliance companies? What measures should be taken to control the risks of overseas mergers and acquisitions?Based on the above issues,the article first sorts out the motivations,synergy,risks of overseas mergers and acquisitions,and related literature on overseas mergers and acquisitions of home appliance companies,and then conducts specific research and analysis from the case of Midea’s overseas mergers and acquisitions,and introduces the overview and process of mergers and acquisitions.Analyzed the motivations of mergers and acquisitions,analyzed the risks in the preparation stage,merger implementation stage and merger integration stage,and constructed a risk management and control framework.The focus was to use the analytic hierarchy process to evaluate the importance of Midea’s overseas mergers and acquisitions risks,and then according to The three stages put forward corresponding risk management and control countermeasures and suggestions.Finally,through the main points analyzed in the previous article,the enlightenment brought by the case is extended to the home appliance industry,and suggestions are made for the risk management and control of overseas mergers and acquisitions of Chinese home appliance companies,so as to better realize the synergy of mergers and acquisitions.The main research conclusions of this paper are:(1)The main motivation of Midea’s acquisition is to use KUKA’s world-leading core technology to serve the company itself,to help it develop the field of smart and environmentally friendly home furnishing,robotics,and improve its industrial layout.(2)Through the analysis of Midea’s overseas M&A risks,the risk management and control framework of Midea’s overseas M&A was constructed,and then the analytic hierarchy process was adopted to evaluate the importance of the above risks,and it was concluded that the risk weight in the integration stage is relatively high,especially the technology integration risk.The risk of cultural integration is more important in overseas mergers and acquisitions.Combining the measures taken by Midea,it puts forward specific risk management and control countermeasures against risks in different stages of overseas mergers and acquisitions.(3)In view of the current situation of overseas mergers and acquisitions by Chinese home appliance companies,five risk management and control recommendations are proposed:strengthen communication and understanding with the host country;improve the reasonable choice of corporate mergers and acquisitions target strategies;be good at using the power of intermediaries;select reasonable financing And payment methods;rationally plan the integration model to give full play to the synergy effect.