Under the background of "Internet plus",the internet industry has become the new engine,new impetus of China's economic development,while the rapid development of the industry has brought fierce competition,which sparked a wave of mergers and acquisitions among internet companies.Internet enterprises execute M&A to expand their scale and enhance the competitiveness.The traditional enterprises want to achieve transformation and upgrading through taking over internet companies.And the capital winter made combination of excellent corporations in different niche markets become the typical model of M&A.However,mergers and acquisitions is a complex economic activity with the coexistence of benefits and risks,as a result,doing research on how to avoid risks in M&A activity maximally is of great importance.Ctrip and Qunar ranks first and second respectively in the online travel area.Based on the case of Ctrip merged Qunar,this paper will analyzing the reasons and results of this case,and putting forward scientific and reasonable suggestions to prevent risks in M&A activity,which will make some practical significance to the M&A activity happened in the internet industry.Based on the background of frequently happened internet M&A and various risks in M&A,This paper begins with the theory of mergers and acquisitions,expounding the meaning and classification of M&A and risks,then summarizing qualitative and quantitative method of identifying risks.After that,the current situation of M&A in internet industry are analyzed,including the situation of this industry and characteristics of internet M&A.The focus of this article is the analysis of this case,combined with the relevant theory of risk,it starts from a brief introduction of the two companies:Ctrip and Qunar,then analyze the reasons,identifying risks in decision-making stage,trading phase,integration phase respectively by applying the method of segmentation,financial analysis,fuzzy comprehensive evaluation.Finally,this paper put forward some general advice for internet enterprises to avoid risks from M&A according to their characteristics of each stages.Including making reasonable strategy for M&A,conducting thorough due diligence during decision-making;when it comes to trading phase,the corporation should learn related legal knowledge,make full analysis of financial condition,improve the accuracy of valuation and use suitable means of payment and financing.Good communication of both sides and appropriate integration mode should be attached great importance in integration phase. |