Study On The Control Of Financial Risk In Mergers And Acquisitions Of Household Appliance Industry

With the developing of economic globalization,more and more enterprises have expanded and become more competitive by the form of mergers and acquisitions.In 2017,there were more than 8000 mergers and acquisitions in China's M&A market and increased its year-on-year segment volumes by 34%.Household appliance industry has formed a mature market competitive environment and the competition is fierce.M&A has become an inevitable trend of strategic development of the appliance industry.In recent years,the various home appliances enterprises such as the Midea,Hisense is also a large-scale overseas M&A However,Appliance industry has inevitable acquisition and merger risks in M&A Therefore,it is necessary to effectively identify and analyze the financial risks in the M&A process,and formulate the control strategy for the financial risks in the M&A in the appliance industry.This paper studies the financial risk of the acquisition of home appliance industry,mainly adopting the research methods such as literature investigation and case study.First of all,the research status at home and abroad is summarized by referring to a large number of literatures.On this basis,the related theories of M&A and M&A financial risks are expounded.Secondly,this paper analyzes the current situation of the development of the appliance industry,and sums up the merger and acquisition characteristics of the appliance industry with a large number of cases,and then by identifying and analyzing the whole process of M&A financial risks of the appliance industry,the reasonable indexes were selected to set up M&A financial risk evaluation system of the appliance industry,and established a fuzzy comprehensive evaluation model of the financial risk;Next,this paper makes a concrete analysis and evaluation of this paper by combining with the case of GE appliances in Qingdao Haier.The research shows that the financial risk is the key factor that affects the success or failure of the merger and acquisition.From the perspective of the whole M&A process,M&A financial risk is in the medium risk level,which shows that the M&A is a more successful M&A,and the effective measures to prevent and control the financial risks can be used for reference in the M&A cases of the follow-up appliance industry.Finally,This paper puts forward some feasible suggestions on the prevention and control of the financial risk in the appliance industry in combination with the above analysis,with a view to improving the prevention and control ability of the financial risk in the home appliance industry.