Research On Financial Risk And Prevention Of Midea's Cross-border Merger And Acquisition Of Kuka

Since the reform and opening up,China's social economy has witnessed its development.Since entering the 21st century,China has formally become a member of the World Trade Organization,which has also enabled Chinese enterprises to identify new development points,through cross-border mergers and acquisitions,to strengthen their-own strength,learn from their strengths and make up for their weaknesses.However,mergers and acquisitions are risky,and cross-border mergers and acquisitions are even more so.Due to the more complex and diverse background of cross-border mergers and acquisitions,different countries may have different political policies and social cultures,different market environments and different legal systems,which make the implementation of cross-border mergers and acquisitions face more uncertain risks.This paper takes Midea's cross-border M&A of German Kuka Company as an example to analyze the financial risks faced by Midea in this cross-border M&A and the preventive and control measures it has taken.Based on the case analysis,it summarizes some preventive measures to deal with the financial risks of cross-border M&A.Firstly,this paper combs the relevant research at home and abroad.At the same time,it defines various types of financial risks and related theories and concepts in the process of M&A.Secondly,this paper introduces the possible financial risks Midea may face in the process of acquisition and its adoption.The corresponding countermeasures are analyzed and evaluated in detail.Through the analysis,the financial risks faced by Midea Group in this M&A mainly include pricing risk,financing payment risk,exchange rate risk and financial integration risk.Midea Group has also taken corresponding preventive measures to effectively deal with these risks;however,Midea also has shortcomings in preventing risks,including not taking clear measures to prevent exchange rate risks,and also has shortcomings in preventing financing and payment risks.Finally,on the basis of the analysis and summary of the cases,some measures and methods are provided for Chinese enterprises to deal with the financial risks that cross-border M&A may face.Midea Group's merger and acquisition of Kuka can be regarded as one of the classic cases of overseas mergers and acquisitions of domestic enterprises in recent years.This paper chooses this case for specific analysis,through the combination of theory and specific cases,to analyze the various risks and corresponding preventive measures in the process of cross-border M&A,and on this basis,summarizes relevant suggestions for other enterprises in China to learn from cross-border M&A,which not only enriches the theoretical research on financial risks of cross-border M&A,but also has a certain degree of feasibility.