Research On Risk Control Of Overseas M&A Integration Of China’s Household Appliance Enterprises

The history of China’s reform and opening up is also the process of integrating China’s economy into the world economic system.With China surpassing Japan in2006 to become the largest foreign exchange reserve country,in 2010,it became the second largest country in terms of global GDP.In 2013,it became the world’s largest cargo trading country,and the globalization of Chinese enterprises has shown an unstoppable trend.From product output to capital output,this is a classic line in which the country continues to “promote” in the world economic map.Today China seems to have reached this node,and the change of this role has extremely significant historical significance.International experience tells us that the economic impact of a country does not come from how many products are exported to the world,but depends on the capital exported to the world,and whether it can influence the global economic rules and trade patterns through these capitals.Since 2000,China’s foreign direct investment has entered a period of rapid growth,with an average growth rate of45%.Especially after the 2008 financial crisis,the pace of overseas investment by Chinese companies has been accelerating.Home appliance companies are more pressing trends at any time,especially in overseas mergers and acquisitions,and are the “leaders” of overseas mergers and acquisitions in China.The case of Qingdao Haier’s acquisition of general-purpose home appliances selected in this paper is the largest overseas acquisition in China’s home appliance industry so far,so it has a certain representativeness.Since the government,the enterprise,and even the general public believe that globalization is the only way for China’s economic development,this paper focuses on the risks encountered by Chinese home appliance companies in the process of mergers and acquisitions through research on cases,and proposes corresponding prevention.Measures will help increase the success rate of overseas mergers and acquisitions of home appliance companies.This paper first defines the relevant theories of overseas mergers and acquisitions and risks,and analyzes in detail the current situation of China’s home appliance enterprises in overseas mergers and acquisitions,and obtains thecharacteristics and possible risks of overseas mergers and acquisitions of home appliance enterprises.Secondly,combined with the specific situation of Qingdao Haier’s acquisition of GEA and the motivation of mergers and acquisitions,this paper analyzes the risks encountered in the integration process of the case,and summarizes the measures to prevent risks in the actual integration of case enterprises.Finally,drawing on the successful experience of the case enterprises and relevant theoretical knowledge,this paper puts forward some effective measures to avoid the risk of overseas mergers and acquisitions.