A Case Study On Financial Risk Of Jinyi Culture Merger And Acquisition

In China,with the rapid development of the capital market and the gradual maturity of the market economy,more and more companies are expanding their market share in a short time through mergers and acquisitions,diversifying their operations to disperse risks and maximizing the optimal allocation of resources.However,in China,many companies are prone to serious financial risks in M&A transactions,and the financial risks of M&A run through the whole process of M&A,thus greatly affecting the results of M&A.Therefore,through the study of financial risks in M&A transactions,summarize the causes of financial risks,and find measures to prevent and control the financial risks of M&A,which can provide some suggestions for future M&A to ensure the smooth progress of M&A.This paper is mainly from the financial risk case of Jinyi Culture M&A as a breakthrough point,using the literature induction method to summarize and summarize the related literature of M&A and M&A risk in detail,which provides a theoretical basis for the study of M&A risk of Jinyi Culture.After introducing the macro-background,industry background and related situation of Jinyi Culture M&A,this paper uses financial analysis method to analyze the key financial indicators of Jinyi Culture,and finds that Jinyi Culture is too optimistic in its valuation of target enterprises,which makes the premium of M&A enterprises too high.In terms of financing and payment,excessive dependence on debt financing,preference for cash payment of M&A prices,to the late Jinyi culture's ability to repay debts weakened,resulting in liquidity crisis after one yuan shell selling.At the same time,Jinyi Culture has not achieved the expected effect on the integration of enterprises after mergers and acquisitions,on the contrary,the financial risk has increased sharply.However,for the financial problems after mergers and acquisitions,the measures taken by Jinyi Culture to deal with the financial risks of mergers and acquisitions are not satisfactory.Therefore,on this basis,this paper puts forward some suggestions for dealing with financial risks in the process of M&A of listed companies,which can provide some reference for other companies to carry out M&A decision-making andrisk management.