Research On The Financial Risk Prevention In Overseas M&A Of Household Appliances Enterprises

In the fourty years since the reform and opening up,the household appliance industry has been an industry that our government has strongly supported and focused on.With the deepening of economic globalization,more and more companies have begun to deploy global strategies through overseas mergers and acquisitions to accelerate the preemption of the international market.China’s household appliance companies have been trying hard to grasp this historical development opportunity and actively go out of the country.Overseas mergers and acquisitions cases have increased year by year.In the case of overseas acquisitions by many household appliance companies,some companies succeeded and achieved expected synergies,but there were also cases of failed mergers and acquisitions.Based on the specific perspective of mergers and acquisitions financial risk,the relevant documents at home and abroad were first summarized and summarized.Then,based on the related concepts of overseas mergers and acquisitions and mergers and acquisitions financial risk related theories,Haier merger and acquisition of Fisher & Paykel were selected as a research case.During the micro-level analysis of Haier’s mergers and acquisitions of Fisher & Paykel’s case,the company identified and analyzed the financial risks existing in the merger and acquisition,focusing on valuation risks,financing and payment risks,exchange rate risks and financial integration risks.Conduct specific analysis.Subsequently,the financial risk of Haier’s merger and acquisition of Fisher &Paykel was quantified using analytic hierarchy process and fuzzy comprehensive evaluation method.Finally,it summarizes the precautionary measures for home appliance companies’ overseas mergers and acquisitions financial risks.Through the research on Haier’s acquisition of Fisher & Paykel’s case,the following conclusions have been drawn: Chinese household appliance companies should improve their awareness of financial risk prevention and determine appropriate merger and acquisition plans based on their own development strategies.Firstly,we must scientifically select target companies,and carefully make merger and acquisition decisions based on fully understanding the relevant information of mergers and acquisitions;in order to reduce the valuation risk,mergers and acquisitions should effectively improve information asymmetry,pay attention to the evaluation of the target company’s potential earnings,and ensure the accuracy of pricing.In the selection of financing channels,it is necessary to select the most appropriate financing method in combination with its own financialsituation to ensure the rationalization of the financing structure;the merger and acquisition party should also flexibly use multiple payment methods based on its own cash flow status,capital structure,and other circumstances;grasp the trend of the foreign exchange market and adopt flexible exchange rate risk response strategies;in the integration phase,it is necessary to formulate a comprehensive and complete integration plan and to coordinate the integration of strategies,finance,culture and human resources.It is hoped that through the study of Haier’s overseas mergers and acquisitions case,we will increase our understanding and awareness of the risks in the mergers and acquisitions process,and at the same time sum up lessons learned and draw lessons from them,and provide targeted practical and operability preventive measures for the future.Overseas acquisitions of household appliance companies provide lessons and improve the success rate of mergers and acquisitions.