Research On Financial Risk Control Of TVS Company Acquired By Hisense

Nowadays,the process of global economic integration is accelerating.Under its influence,a growing number of Chinese enterprises begin to develop cross-border mergers and acquisitions projects successively,trying to expand market share and enhance global competitiveness through cross-border mergers and acquisitions.However,due to the lack of experience in cross-border mergers and acquisitions and the lack of effective measures to control the financial risk in the process of mergers and acquisitions,most cross-border mergers and acquisitions fail.Therefore,it is of practical significance to systematically analyze the financial risks existing in cross-border m&a and study the control strategies of these financial risks,so as to promote the success of cross-border mergers and acquisitions projects.In this paper,the significance of the research on mergers and acquisitions is first clarified.The relevant theories and research results on mergers and acquisitions in domestic and foreign literatures are combined to elaborate the relevant theories on financial risks of mergers and acquisitions.Then,on the basis of the theoretical basis to hisense company mergers and acquisitions,TVS as case study object,using the case method,the combination of qualitative and quantitative analysis method from the preparation,mergers and acquisitions integration through the three stages of hisense electric facing financial risk are analyzed,and the financial risk through the Z value model of comprehensive evaluation,found that hisense electric appliance is in the process of the acquisition of strategic risk decision-making risk,valuation risk and integration.For the merger of financial risk,hisense electric appliance to the field of target enterprises,the use of intermediaries to fully understand the financial situation of the target enterprise and the internal financing and external financing the financing way of the combination of effective measures,to a certain extent,effective control of financial risk for the existence of the acquisition,the transaction complete smoothly,hisense electric also realized to expand overseas markets,access to research and development technology strategic objectives.However,in this acquisition,hisense still has some deficiencies in the control of valuation risk,payment risk and integration risk,resulting in excessive merger premium,increased integration risk and failure to achieve financial synergies in the short term.Finally,this paper summarizes the experience and lessons of hisense appliance's acquisition in financial risk control,and draws inspiration from scientific strategic decision-making,improving value assessment process,reasonable arrangement of financing methods,flexible use of payment methods,and establishment of risk warning mechanism.It is hoped that it can provide valuable references for hisense electric appliances and other enterprises in the future cross-border mergers and acquisitions,and promote the success of cross-border mergers and acquisitions projects.