Research Of Financial Risk Evaluation And Control Of Chinese Enterprises’ Overseas M&A

Since the 1980s,mergers and acquisitions have shown a growing trend in China,which is characterized by a wide range of transactions,a large amount of money,and more cross-border transactions.As the "going global" strategy is booming around the world,transnational mergers and acquisitions of Chinese companies are becoming an effective way to find high-quality foreign resources and technologies.At present,the world economy is in a state of low growth,low investment,low trade,low foreign investment,low inflation,low interest rates,and low oil prices,which are caused by a series of deep-seated structural reasons.The sluggish economy can provide important opportunities for mergers and acquisitions,and only mergers and acquisitions can fundamentally change the existing economic structure and push the global economy out of the depression.M&A refers to a type of property purchase and sale transaction conducted by an enterprise in order to obtain equity or control of other enterprises,and is an important way to achieve rapid expansion of the enterprise.In today’s society,most companies are doing their best to become giant enterprises,and merging competitors has become one of the main means to achieve this goal.With the development of economic globalization,mergers and acquisitions between enterprises have intensified.As one of the countries with rapid economic growth in the world over the past two decades,China’s overseas M&A business has also grown rapidly.At the same time,the proposal of the“Belt and Road”has brought an important period of strategic opportunities for Chinese companies’overseas mergers and acquisitions.However,judging from the current practice in China,there are many losers on overseas M&A,but few successful ones.Domestic wine leader Zhang Yu has acquired overseas wineries several times in the past five years to make a breakthrough,but overseas wineries have been losing money across the board,their performance has continued to decline,and their operations have become more difficult;The overseas acquisition of the first share of Onlly Education’s overseas M&A business has fallen short of expectations,and has even reached the point where the bank issued a notification letter to recover the arrears.It can be seen that overseas mergers and acquisitions can be called a double-edged sword in practical applications.If the merger and acquisition is successful,it will enable the company to expand the scale of operations,and also have a synergistic effect to achieve leap-forward development;if the merger and acquisition fails,it will lead to poor management of the enterprise or huge debts.In the face of overseas mergers and acquisitions that can also carry boats,Only more scientific and reasonable utilization can promote its positive effect on the acquirer and achieve the goal of coordinated development.This article is divided into five chapters.The first chapter is the introduction.This chapter summarizes the current research status at home and abroad based on a brief description of the topic selection background,research significance,and theoretical content of mergers and acquisitions.Through the combing of this part,we can have a clearer understanding of the theory of mergers and acquisitions.The second chapter is the related theories of the financial risks of corporate cross-border mergers and acquisitions.It mainly introduces the three types of financial risks of cross-border mergers and acquisitions,risk evaluation methods,and risk control methods,and makes necessary theoretical foundations for the subsequent case analysis.The third chapter is a case analysis of Haier’s overseas mergers and acquisitions of general household appliances.This chapter introduces the case of Haier’s mergers and acquisitions of general household appliances.On the basis of describing the basic operating conditions of Haier’s and general household appliances,it introduces the basic process of mergers and acquisitions and analyzes the Motives,and analyze the financial risks before and after the merger from four angles:pricing risk,financing risk,debt service risk,and integration risk.At the same time,the Z-value model is used to evaluate the financial risks in the merger.The fourth chapter analyzes the control methods of Haier’s merger and acquisition of general household appliances.First,it comprehensively introduces the risk control measures in each aspect of the merger and acquisition process from the four aspects described in chapter Ⅳ.The performance of the company is compared longitudinally,and the conclusion of the financial risk control effect when the two are combined is obtained through the data.It mainly analyzes the profitability,operating capacity and growth ability of the company,and quantitatively analyzes and calculates the financial risk control of this merger and acquisition case.While affirming that this case has indeed improved the performance of Haier,There are still deficiencies in financial risk control.The fifth chapter is the research inspiration and suggestions in China’s overseas mergers and acquisitions.The research enlightenment mainly points out the key points worthy of reference for other companies in this merger and acquisition,specifically:reducing risks with the help of intermediaries,and establishing "light integration" strategic planning.At the same time,in view of the risk prevention countermeasures proposed in this merger and acquisition case,based on the above risks,this chapter proposes corresponding countermeasures from the aspects of exploring international market financing methods and financing structures,cooperation with financial institutions such as banks,and financial integration plans.