Financial Risk Anaiysis Of Youluoka M&A Fuhua Yuqi

Under the current circumstances,mergers and acquisitions is to achieve rapid expansion of enterprises,an important way to grow and develop.Although the success of mergers and acquisitions,subject to many factors.But the financial risk throughout the entire acquisition process,is the most important.Youluoka was originally a small-scale private enterprises,but through business development and mergers and acquisitions,has become a large listed companies.This paper chooses the successful experience of mergers and acquisitions of Fuhua Yuqi,and analyzes its successful experience in controlling the financial risk of M&A,hoping that other small and medium-sized enterprises in China can learn their experience so that the enterprises can quickly grow and control and prevent mergers and acquisitions Financial risk.Before analyzing the case of Youluoka acquisition of Fuhua Yuqi,the article first summarizes the domestic and foreign research on the financial risk of M&A and related theories,introduces the mergers and acquisitions,the causes of mergers and acquisitions,the acquisition process,and the mergers and acquisitions Times to do the work of mergers and acquisitions.This paper mainly analyzes the financial activities of Youluoka before and after M&A and M&A,and analyzes whether the measures taken can effectively control the financial risk.In this paper,we use the combination of theory and case analysis to analyze the preparation work,the determination of M&A,the financing of M&A,the payment method of price and the financial integration after M&A.Through the analysis of the case,it is found that the selection of the target enterprise,the main consideration of their own actual situation and the prospects of the development of the target enterprise;before the acquisition of professional intermediaries to hire the target business audit and asset evaluation to determine the value of the target business.At the same time with the target business signed a performance compensation agreement to guard against pricing risks;fully consider the advantages and disadvantages of various financing methods,combined with their own financing capacity and its own financial level,choose the lowest cost of financing and payment;The financial system,financial strategy and financial staff ofthe enterprise are integrated to meet the financial strategy of the acquirer.Finally,summarize the above practices as a concrete measure to control and prevent financial risks of mergers and acquisitions.It is hoped that these measures will provide a basis for domestic enterprises to guard against financial risks in mergers and acquisitions.