Research On Financial Risk Assessment And Control Of Chinese Enterprises' Overseas M&A

With the globalization of the economy,many large enterprises around the world have made many overseas mergers and acquisitions,and many companies have succeeded in achieving leap-forward scale expansion by overseas mergers and acquisitions.Since the beginning of the new century,with the continuous strengthening of the economic strength of Chinese enterprises,Chinese enterprises have increasingly participated in overseas M&A transactions.Overseas mergers and acquisitions often involve different macroeconomic policies,legal systems,regulatory methods and market environments among different countries.There are many uncertainties which lead to many risks.Among them,enterprises must focus on the financial risks.The effective evaluation and control of the financial risks of overseas mergers and acquisitions is the key to achieving the strategic objectives of overseas mergers and acquisitions for Chinese companies.This article discusses the related concepts of overseas M&A financial risks on the basis of comprehensive analysis by arranging relevant literature on overseas mergers and acquisitions.According to the order of overseas M&A process,the financial risks of overseas M&A are divided into pricing risk,financing risk,payment risk and integration stage risk,and the connotation,causes and characteristics of each risk are comprehensively discussed.This article takes Midea Group's acquisition of KUKA Group as an example to analyze the motivation of Midea Group's overseas mergers and acquisitions,and comprehensively analyze and evaluate the financial risk assessment and control of the Midea group's overseas mergers and acquisitions through specific data and information.According to the order of the overseas M&A process of Midea Group,it analyzes its pricing risk,financing risk,payment risk and integration stage risk,and interprets and analyzes the causes,control measures and effects of the financial risks of the Midea group's overseas M&A.Finally,in view of the current situation of overseas mergers and acquisitions of Chinese enterprises,this article combines theoretical research and case data analysis to propose financial risk management and control measures for overseas mergers and acquisitions.