Research On The Risk And Prevention Of Midea M & A Kuka

With the rapid development of economic globalization,overseas mergers and acquisitions have become an important means for companies in various countries to implement international strategies.More and more companies have joined the economic activities of overseas mergers and acquisitions.As a participant in the global economy,Chinese home appliance companies are also actively join the wave of overseas mergers and acquisitions.However,since the development of overseas mergers and acquisitions,there are not many cases of successful mergers and acquisitions by global enterprises,and only one third of overseas mergers and acquisitions involving Chinese home appliance companies have been successful.There are many factors that have negative effects on overseas M & A activities.Among them,inadequate prevention of M & A risks is one of the important reasons leading to the failure of overseas M & A.This article takes the classic case of a special case of mergers and acquisitions(overseas cross-industry mergers and acquisitions),a large scale of mergers and acquisitions,and the acquisition of KUKA in Germany as the object of analysis.The article first reviews the current situation of domestic and foreign scholars' research on the causes,assessment methods,and preventive measures of overseas mergers and acquisitions,and then briefly describes the history of Midea Group's mergers and acquisitions and the various risks that M & A may face.Introduce the motivation of mergers and acquisitions and transaction process.After conducting a qualitative andquantitative analysis on the risks of Midea Group's acquisition of KUKA in Germany,it introduced the analytic hierarchy process to quantitatively evaluate the overall risk of the merger and acquisition.The study found that among the overall risks of the Midea Group's acquisition of KUKA in Germany,the overall cultural,financial,human,and technological integration risks after the acquisition are significantly higher than the pre-merger valuation,payment,and political and legal risks.Among pre-merger risks,valuation risks are relatively high,and payment risks and political and legal risks are relatively low.Among the integration risks after mergers and acquisitions,financial and human integration risks are relatively high,and technological and cultural integration risks are relatively low.Taking into account the risk prevention measures and shortcomings taken by Midea Group in this M & A activity,this paper draws the conclusions of the study.Obtaining core technologies and achieving strategic goals are the main motivations for this M & A,the asymmetry of information,and the independence of KUKA operations.It is an important cause of risk.Among the risks involved in this merger and acquisition,compared with the related risks in the early stages of mergers and acquisitions,the integration risk in the later stages of mergers and acquisitions is relatively high,and it is necessary to pay great attention to the prevention of later integration risks.Therefore,this article gives Midea Group's risk prevention recommendations for the acquisition of KUKA in Germany,mainly from establishing a unified financial management system and early warning system,improving employee incentive policy mechanisms,cooperating to establish research and development centers,constructing cultural exchange and innovation platforms,and improving information communication mechanisms.Start with five aspects,in order to effectively prevent the risks in this merger and acquisition activity,improve Midea Group's operating efficiency,give full play to the synergies of mergers and acquisitions,and achieve Midea Group's strategic objectives of this M & A.