QD Group’s Acquisition Of PH Company Financial Risk And Prevention Research

The supply-side structural reform puts new demands on Chinese enterprises and needs to adjust the existing supply structure.At present,China’s economic structure is at a critical moment of industrial upgrading and economic transformation.In the case of weak economic growth,traditional enterprises are driven by innovation and strategic perspectives.On the one hand,they must consolidate their development status,and on the other hand,seek economic transformation and enter.Emerging industry.Cross-border operations of enterprises can enter other markets or fields through self-development,or they can acquire high-quality assets of the target industry.Self-development is more suitable for well-developed and experienced companies.Because of the high cost and long cycle of this type of operation,management is often unfamiliar with new industry management and operation methods,resulting in lower success rate.Cross-industry acquisition of other companies’ quality assets can rapidly expand business scale and improve assets.Quality and profitability can break the technical threshold and quickly enter certain industries that are strictly regulated by the government,and have the characteristics of short time,low cost and low failure rate.The gradual opening up of China’s capital market has led to more and more traditional enterprises seeking to transform and upgrade.The overall trend is to cross-industry mergers and acquisitions,new formats,technology and other strategically strong companies,such as education companies,Internet technology companies and 5G companies.Wait.Mergers and acquisitions are adjustments to stock assets and are more market-oriented adjustments.By optimizing the market resource allocation through mergers and acquisitions,it is also possible to achieve the goal of promoting supply-side structural reform.In an increasingly fierce market environment,traditional enterprises must expand their business scope to achieve diversified development.Cross-industry mergers and acquisitions are a shortcut to quickly enter new fields.However,cross-industry mergers and acquisitions also face high financial risks.For example,due to the lack of understanding of unfamiliar industries and profit models,the target companies have high valuation,high premium,andhigh performance commitments,which lead to pricing risks;capital liquidity risks and debt repayment risks due to improper financing models and payment methods;After the lack of experienced high-level management personnel,the coordinated development of the company can not achieve the expected series of problems,which will lead to the failure of cross-industry mergers and acquisitions.Only by fully understanding and mastering the management of financial risks in the process of mergers and acquisitions,timely adjusting the company’s strategy to make reasonable M&A choices,and learning from the failures of cross-industry M&A failures can improve the success rate of M&A,which has a view on the company’s management and the entire capital market.Significance.In view of the hidden dangers of traditional enterprise cross-industry M&A education enterprises,this paper selects typical cases with high premium as the research object,and elaborates on the domestic and foreign literatures related to the meaning,type,cause,evaluation and control of M&A financial risks.The related theory of M&A financial risk,case study was used to conduct a case study of QD Group’s acquisition of PH company,and the basic situation of both parties was introduced.The background of the target company of the acquisition was analyzed,including the development of the industry and the status of mergers and acquisitions.As well as the motivation of the industry mergers and acquisitions,at the same time,the QD Group’s M&A activities in recent years were simply sorted out,and then the quantitative risk assessment of the QD Group’s acquisition of PH companies was carried out by using the Delphi method and the analytic hierarchy process fuzzy comprehensive evaluation theory.Due to the interaction and effect between profit forecasting risk,liquidity risk and debt repayment risk,financial management system risk and cultural integration risk,pricing risk,payment risk and integration risk lead to final merger failure,which gives Targeted risk prevention Fan measures and suggestions,in order to provide reference and reference for the cross-industry M&A decision of traditional enterprises in the transformation and upgrading.