Star-Net M&A Asia Telco Financial Risk Control Of The Case Study

Because of the global economic integration, China’s modern enterprises developed from weak to strong, from "outdate" to "fashion", even developed in conjunction with Chinese situations. Facing the new situation and the current challenges, to achieve the modern enterprises’ rapid growth and international expansion, the most important method is mergers and acquisitions. However, it always have to face the fact that there are a number of predictable and non-predictable multiple risks, which the most important risk is the financial risk. Because of the importance and comprehensive of the financial risk, this article uses the research methods which combine the theory and case analysis, the theory is used to analyze the financial risks during M & A, from the case of the Star-Net merger the Asia Telco, it can be found that there are different financial issues and financial risks in different aspects of M & A, and provide good suggestions about how to control the financial risk control during the enterprises’ mergers and acquisitions.At first, this article determined the background, the meaning of this topic, research objectives and research methods, then summarize the main contents of the research, and explain the innovation of this article, finally, summarized the current enterprises’ financial risk situation. Otherwise, to define the definition of mergers and acquisitions, and given the concept of financial risk in mergers, the merge procedure can divide the financial risk into targeted enterprise valuation risk, due diligence risk, payment risk and the integration risks after merge. Then, it introduced the basic information of Star-Net and the Asia Telco, and the case also be described in detail, including the M&A background, purpose, acquisition details and the result of acquisition. Then it analysis this case and find out the financial risk control methods. Finally, it gets the conclusion and provides some suggestions to control the financial risks of mergers and acquisitions. At the same time, it finds out the article’s deficiencies.Previous studies mainly do the research through the valuation of the target company and the acquisition financing to study the financial risk of M & A, in this article, it combines the merger theory, the financial analysis theory, the business valuation theory, mergers and acquisitions paid theory, and the financial risk management theory, analyze the different financial risk and the causes of them, and on this basis, it provides financial risk control measures, it has significant meaning to M & A practice. Through the analysis of the case, it explains to the reader the processes and ideas of the M&A financial risk management clearly, guide the reader know the theory of the financial risk management of acquisition, know how to identify the risks, to analyze the reasons of the risks, the to control the risk by using different methods, finally complete the acquisition in a better way.