Case Study On Financial Due Diligence Investigation Of SH Company's Merger And Acquisition Of BS Company

M&A is a way to rapidly expand the scale of enterprises and achieve the rapid integration and transformation and upgrading of the industry's industrial chain.M&A is more and more respected by the market in the current era of continuous improvement and creation of the capital market.Through M&A companies can acquire core technologies and resources,rapidly enhance their own competitiveness,and strengthen their position in the industry.As an important part of M&A due diligence,the importance of it is self-evident.Due diligence should conduct a series of in-depth and detailed investigations and understandings around the historical data,current operation conditions and future development prospects of the target company in order to reveal the true operating capabilities,financial status,and potential risks of the target company for mergers and acquisitions,and to make correct merger decisions for the company.However,many M&A cases at home and abroad do not attach importance to financial due diligence which finally lead to the failure of M&A.This article attempts to analyze the main points of attention in the process of M&A from the perspective of financial due diligence.On the basis of reviewing the relevant literature on financial due diligence,the author firstly introduces the background of financial due diligence on M&A,as well as the research methods and research framework.The author then reviews and summarizes the research results of financial due diligence on M&A at home and abroad,sorts out and sum up the methods,content,necessity,and importance of financial due diligence.Based on the above related theories,from the actual case of the SH company's M&A case of BS's financial due diligence,by focusing on the merger and acquisition motives of both parties,the author elaborates the investigation methods and the main content of the investigations during the financial due diligence investigation around the M&A motivations of both parties.By focusing on the detailed investigation and analysis of the company's business reality,asset status,and profitability,as well as the industry's future development prospects,the author explores the current operating model,the future management pressures such as internal capital and management,and external industry competition pressure of the BS company and makes the market analysis and judgment of the company's two major core technologies in the future to reveal the risks that may exist in the future and to provide a reference for SH's M&A decision.Through the analysis of SH's M&A of BS company's financial due diligence cases,one aspect is the summarization of the financial due diligence investigation of this M&A case.On the other hand,the author hopes to inspire and assist the similar M&A activities in the future.