Study On Financial Risk Control Of Cross-Border Mergers And Acquisitions

From the number and amount of overseas M&A for the past few years,overseas mergers and acquisitions have become a significant method for company to rapidly realize external expansion.According to authoritative statistics,in 2016,there were 924 domestic cross-border M&A transactions,up 142% year on year,and the total amount of M&A was about 220.9 billion dollars,up 246% year on year.Although the number of mergers and acquisitions in China has been high,the success rate of mergers and acquisitions has been unable to improve.According to the survey,the reason why the success rate of China’s cross-border mergers and acquisitions enterprises continues to be low is that the mergers and acquisitions enterprises can’t timely find the financial risks in mergers and acquisitions,let alone take corresponding control measures.Therefore,to find out the financial risks confronted by multinational companies in the course of M&A,and propose the relevant control measures of our research priorities.First of all,this paper reviews domestic and foreign references on cross-border mergers and acquisitions,and classifies and summarizes them,so as to understand the status quo of cross-border mergers and acquisitions research,and to highlight the research perspective of this paper.In addition,based on the concepts and theories related to multinational mergers and acquisitions,and combined with the completed M&A of enterprises in the process of overseas M&A encountered financial risks,the source and causes of the study and analysis.Secondly,combined with the typical case of Haier’s acquisition of General Household Appliances,this paper analyzes in detail the causes and control measures of the financial risks in cross-border M&A.First,it finds out the causes of financial risks in the process of cross-border M&A.Then it analyzes the control measures taken by Haier in the process of merger and acquisition.Finally,it finds out some problems existing in Haier’s control of financial risks,and puts forward corresponding suggestions.Finally,through the analysis of this case,some enlightenment is obtained,and this enlightenment is extended to the whole field of transnational merger and acquisition.The more effective control measures of Haier in the process of merger and acquisition are summarized and summarized,and the ineffective or ineffective measures are highlighted and improved,so as to provide references and warnings for companies that are going to conduct cross-border merger and acquisition,so as to make modest efforts to improve the success rate of China’s cross-border merger and acquisition.This paper choose the representative cases of M&A general sea er home appliance research and analysis,the following research results: on the whole means of Haier to control financial risk is relatively effective,but in M&A execution phase,Haier’s choice of financing way,payment are relatively single,and insufficient to the attention of the exchange rate risk,I think that Haier can broaden the financing channels,to take a variety of payment,and attaches great importance to the exchange rate changes can effectively evade these risks,and this is what will happen at the other enterprise of transnational M&A in China place worthy of attention.Above all,general sea er home appliance that the merger of financial risk control measures is useful,however,on how to further improve the success rate of transnational M&A in our country on this issue,you need to our thorough research,for China’s enterprises in M&A of financial risk to provide more effective control measures,for the purpose of raising the success ratio of transnational M&A in our country.