Research On Financial Risk Of Traditional Enterprise M&A Internet Companies

On March 5,2015,Premier Li Keqiang at the twelfth session of the People's Republic of China people's Congress Third Conference on the statement of the government work report,and put forward the concept of "Internet plus" action plan.Our country has been in the Internet era,the product of the Internet and the economic environment have gradually infiltrated our traditional industries,and the traditional enterprises in this environment are in urgent need of transformation.In recent years,more and more traditional enterprises to implement mergers and acquisitions to an Internet company,walk on the path of transformation of traditional enterprises "Internet plus".In this paper,the collection and reading of data,literature,typical cases of research and analysis.With the concept of mergers and acquisitions,mergers and acquisitions,mergers and acquisitions motivation types,procedure,application and evaluation of traditional enterprises and Internet mergers and acquisitions in the financial risk concept,summed up the reasons of China's traditional enterprises and Internet companies to produce financial risk in mergers and acquisitions and traditional enterprises and Internet companies in the merger of financial risk financial risk motivation test mergers and acquisitions of Internet companies to the analysis of Chinese traditional enterprises.With the Internet business concept,Internet companies and economic characteristics of the Internet company's profit model,the traditional concept of enterprise in our country,traditional companies and Internet companies have different economic characteristics and their profit model of traditional enterprises and Internet companies in this relationship,according to Internet mergers and acquisitions above the concept and research as well as traditional business background and motivation and current situation we can conclude the following four financial risk in the process of Internet mergers and acquisitions of traditional enterprises in mergers and Acquisitions: due to information asymmetry or unreasonable evaluation method for enterprise mergers and acquisitions is overvalued,increased mergers and acquisitions lead to cost valuation of venture enterprises;China's traditional enterprise choice of payment it is not appropriate and the effect of the financial situation of the enterprise payment risk;corporate mergers and acquisitions are not due to lack of funds It can raise the funds needed for the payment of the purchase price on time and in full,and cause the financing risk that the M & A activities can not be successfully completed;due to the different corporate culture and management characteristics.In the early stages of mergers and acquisitions,two enterprises will appear incompatible state.Some enterprises because of late integration of bad and loss of integration risk.The Leo group Limited by Share Ltd MampA Shanghai diffuse cool advertising case analysis,in the case of the case background,mergers and acquisitions effect,analysis included in the risk of mergers and acquisitions after the pre merger of Limited by Share Ltd: Leo group before the process of valuation risk,Shanghai man cool group Limited by Share Ltd of Shanghai M & a Leo man in the process of merger financing and payment risks,Leo group Limited by Share Ltd in Shanghai after the merger and acquisition integration risk diffuse process,learning Leo group Limited by Share Ltd in its acquisition of Shanghai diffuse cool advertising companies and other companies is how to control the financial risk of finally reached the following conclusions:In the Internet enterprise and traditional enterprise merger financial risk before the need to make a correct analysis and learn to use the intermediary in the acquisition of the role of the relevant prevention and control measures;on the Internet,traditional enterprise merger financial risk need to establish their own private enterprise has the characteristics of self enterprise financial risk prevention system,Internet companies and traditional mergers and acquisitions two methods using qualitative analysis method and quantitative analysis method combined with the method and take the behavior of enterprises and information bulletin combining prevention and control measures;after the merger of financial risk prevention system needs to establish a cash budget management effective and unified management of the prevention and control measures of governance.