Research On Financial Risks About Midea M&A Kuka

Along with the recovery of global economy,Chinese regulators introduced a series of good policies to support overseas investment.Meanwhile,with the increase of national consumption levels and living standards,overseas mergers and acquisitions in China have arrived a rapidly development period and keep stable.Overseas mergers and acquisitions can bring a lot of benefits,however,some corporation would find themselves in financial distress due to recklessness and greed.That means the problem which needs to be fixed in a merger is how to identify financial risks and how to avoid risks.The study object of this article is Media’s overseas mergers and acquisitions.The dissertation describe the background and motivation of Midea M&A KUKA.On basis of discovering financial risks,discussing the risk identification of previous-term,middle-term and terminal-term.Then,the study uses the method of EV/EBITDA,debt-paying ability,and Free cash flow method to examine the financial risk distinguishes and controls at each stage,and points out financial risks,such as pricing risk in previous-term,financing risk and payment risk in middle-term,and integrating risk in terminal-term.Finally,focusing on the problem,the paper take the right control measures.For example,evaluating the target company in the right way,planning a reasonable capital structure,expanding financing channels,using different means of payment based on their own points,and putting the risk management,financial warning as the focus of its work.Through the research,the author hope to put financial risk management which has universality to appliance industry,and improve the control ability of Chinese M&A.