Risk Identification And Control Of Merger And Reorganization Of Consumer Electronics Enterprises

The consumer electronics industry is the key area to be developed in China’s "14 th Five-Year Plan" in the future,and it is the window for the transformation of China’s high-end manufacturing industry.From the perspective of market factors and policy factors,mergers and acquisitions will become the main way for consumer electronics companies to gain a dominant position in the competition in the future.After the epidemic,the consumer electronics industry entered the stage of structural adjustment and industrial upgrading,and the industry competition became more and more fierce.Based on the capital-intensive and technology-intensive characteristics of consumer electronics enterprises and the current market competition background,mergers and acquisitions became an important means for enterprises to quickly obtain technology and capital and integrate the industrial chain.In addition,from the perspective of policy factors,the implementation of the comprehensive registration system makes the merger and reorganization of listed companies more efficient,and the supervision more scientific and flexible,which will prompt the leading enterprises in the industry to carry out mergers and acquisitions to improve their competitiveness and market share.Under this background,it is of practical significance to choose the research on risk identification and control of mergers and acquisitions of consumer electronics enterprises.In the case selection of M&A of consumer electronics enterprises,this paper selects the representative case of M&A of consumer electronics enterprises-Lingyi Technology’s acquisition of Jiangfen Magnetic Materials as the analysis object,and summarizes the risks that similar enterprises may face in the process of M&A and reorganization.In the M&A case in this paper,Lingyi Technology,as the substantive acquirer,reached an M&A intention with Jiangfen Magnetic Materials through M&A and restructuring in 2018 to form a merged listed company.Although both companies had strong market competitiveness in the field of consumer electronics segmentation before the merger,the performance of the merged listed companies was not satisfactory after the merger.In the first year after the completion of the merger,it turned from profit to loss,with a net profit of-680 million yuan,which shocked the market.The process of this merger and reorganization has shown some mistakes in each stage,which eventually led to a long merger and integration period,so it is typical of risk analysis.In addition,different from the previous thinking of selecting isolated risk types for risk analysis,this paper takes the whole process of enterprise merger and reorganization as a clue,and analyzes the risks that may be faced in each continuous stage in time and procedure from the stage of target selection,due diligence,scheme design and approval,reorganization and merger implementation to merger and integration.In different stages of M&A,the risks faced by Lingyi Technology before and after M&A are identified and controlled through risk identification and risk control.Firstly,the possible risks in various stages of the acquisition of Lingyi Technology are identified and evaluated.Then,through financial data,public event information,factor model and other factors and methods,whether these risk points break out during the acquisition of Lingyi Technology is evaluated,and then whether the risk control measures of Lingyi Technology are reasonable is evaluated.On the basis of summarizing the gains and losses of risk control in the merger and reorganization of Lingyi Technology,the risk identification and risk control measures that consumer electronics enterprises should pay attention to in each stage of merger and reorganization in the future are refined.