Research On Financial Risk Identification And Control Of Overseas M&A Of Chinese Electronics Product Manufacturing Industry

Human society has entered a highly information age,and electronic components are widely used in life.Whether it is high-end electronic intelligent equipment or the manufacture of modern high-tech weapons,it is inseparable from the development of electronic product manufacturing.At the same time,people are increasingly demanding the quality and performance of electronic products.However,the development of China's electronic product manufacturing industry is hindered by the world economic situation and the characteristics of the industry itself,facing the difficulties of high-end chip technology lack and product import and export restrictions.Overseas M&A is one of the most important and direct ways for China's electronic product manufacturing enterprises to "bring in"and "go out".What kind of financial risk they will face and how to reduce the financial risk become an important problem to be solved.This paper studies the identification and control of the financial risks caused by overseas M&A of electronic manufacturing enterprises.First of all,this paper summarizes the financial risks of overseas M&A at home and abroad,introduces the double index filtering method(DSF)and analytic hierarchy process(AHP)to construct the risk index system of overseas M&A,and based on the case study of Wintech's M&A of Nexperia in 2019.Four primary indicators,namely valuation risk,financing risk,payment risk and integration risk,and their lower secondary indicators are weighted.Next,the fuzzy comprehensive evaluation method is used to evaluate the overseas M&A cases.Finally,some measures of risk control are put forward in the process of M&A.Based on the case study of Wintech's merger with Nexperia,the following conclusions are drawn:Wintech's merger and acquisition of Nexperia is a large-scale overseas merger and acquisition event in China's electronic product manufacturing industry.The financial risks of its M&A are in a high-risk range,which requires careful prevention and control.Among the financial risks of overseas M&A,integration risk is the most likely and serious risk,which directly determines the result of overseas M&A.Valuation risk comes next and may lead to other financial risks.When Chinese electronics manufacturing enterprises merge overseas,the focus of prevention and control is different according to different financial risks.The key to preventing and controlling valuation risks is to avoid inaccurate valuations caused by multiple factors,and the excessive valuation premium is the most important factor,which will increase the financial burden of M&A.The key to preventing and controlling financing risks is to improve financing security.Among them,the pledge of company equity is the biggest factor affecting financing security,which not only affects the financing efficiency,but also poses a great risk to the stability of the company's equity structure The most important thing to prevent and control payment risks is to prevent unstable cash flow and break the capital chain.The focus of prevention and control of integration risks is to deal with the relationship between the main businesses of the merger and acquisition to prevent the loss of assets caused by uncoordinated business development.