Research On Financial Risk Identification And Control Of Enterprise M&A

In recent years,due to the relatively extensive economic development model in the past,China has suffered serious ecological damage and environmental problems have become increasingly serious.In order to promote green development and protect the ecological environment,the state has gradually paid attention to and encouraged the development of the environmental protection industry from the policy level,and regarded the construction of ecological civilization as an important part of the "five in one" construction.Environmental protection has become a common focus of the whole society.With the national-level policy foundation,the environmental protection industry has become a hot sun industry,and the state also encourages social capital to enter the environmental protection industry.Faced with the right time and place,many companies enter the environmental protection field through mergers and acquisitions.Environmental protection industry companies are not limited to endogenous growth.They can acquire greater market share and voice by acquiring related companies.Against this backdrop,the environmental protection industry's M & A cases and scale continue to grow.Under the leadership of actual controller He Jianfeng,Yingfeng Environment entered the field of environmental protection through mergers and acquisitions in 2015.It is mainly engaged in environmental monitoring and solid waste management,and is a new force in the environmental protection industry.Zhonglian Environment is an important manufacturer of high-end sanitation equipment.It has been cultivating sanitation equipment and services for many years,and has accumulated a profound customer resource network and a good reputation in the industry.The two sides have formed a complementary relationship in the upstream and downstream of the solid waste industrial chain.Therefore,the case study in this paper selects Yingfeng Environment to invest heavily in the acquisition of Zhonglian Environment,which is symbolic and typical.In the process of M & A,the identification and control of M & A financial risk determines the direction and final effect of M & A.Based on this,the issues studied in this paper are what financial risk points were identified by Yingfeng Environment in the case of acquiring Zhonglian Environment.How are these financial risks controlled and how effective are they?Because the environmental protection industry has entered the rapid development channel in recent years due to policy stimulus,large-scale mergers and acquisitions started late,and there are few studies on the identification and control of financial risksthat are typical cases of large-scale mergers and acquisitions in the environmental protection industry,so this article will expand on this the study.The research ideas of this paper are as follows: First,based on the theory of M & A risk segmentation identification,engage in three perspectives: pre-,mid-event and post-event analysis,and analyze the profit peak from multiple dimensions such as pricing risk,financing and payment risk and M & A integration risk The financial risks of the whole process of environmental acquisition Zhonglian Environment;secondly,analyze the specific measures taken by Yingfeng Environment to control these financial risk points separately,and analyze and evaluate the control effects;finally,combined with the actual case of this article,it was found that its mergers and acquisitions Financial risk points that have emerged and put forward control suggestions.At the same time,a case summary is provided to provide a reference for other companies to implement financial risk control in the process of implementing similar mergers and acquisitions.The expected findings of the research in this paper are as follows: the typical case of environmental protection industry mergers and acquisitions,the main financial risk points of the entire process of the acquisition of Zhongfeng Environment by Yingfeng Environment,focusing on the analysis of the corresponding control methods adopted and evaluation of its control effects,and at the same time,it found that the Financial risk points and put forward control suggestions.The research value of this article lies in the analysis and evaluation of the financial risk identification and control of the M & A implementation process through the actual case of Yingfeng Environmental M & A Zhonglian Environment,summarizing its risk control experience and enlightenment for other companies(including but not limited to environmental protection(Industry companies)The identification and control of financial risks in the M & A process provides a strong reference and reference,and helps to promote the sustainable and healthy development of the enterprise M & A market.