Geely's Acquisition Of Volvo's Case Financial Risk Control Research

By continuously improving their own capabilities,giving full play to their own advantages and stabilizing their development,enterprises can develop in a fierce market competition with the continuous development of science and technology,market-oriented informationization and economic globalization.Merger is a positive way for enterprises to obtain production factors,and is also an economic way for enterprises to continue and develop steadily and achieve good market position.As an important economic activity,Merger plays an important role in today's fast-growing society and has become a way for enterprises to achieve rapid economic expansion.Mergers and acquisitions re-combination of enterprise resources through transfer transactions between property rights,with the aim of enhancing the comprehensive strength of enterprises and achieving a new and higher level in terms of production and innovation of enterprises.It not only improves the corporate system and industrial structure,but also is a favorable channel for the company to flourish.Cross-border mergers and acquisitions can help enterprises to introduce foreign advanced patented technology and professional talents.Merger enterprises can take advantage of the sales market and brand advantages of the acquired parties to help Merger companies to further develop market channels and obtain precious strategic resources and technical resources to achieve Merger.The leap-forward development of enterprises has won the market in foreign markets.This article is aimed at the case of Geely's acquisition of Volvo.It mainly studies the financial risks and control measures expected before the merger,the financial risks and the control methods adopted in the process of mergers and acquisitions,the financial risks after mergers and acquisitions,and the comparative analysis of the financial risk indicators before and after the merger and acquisition and control measures.Specifically analyze the financial risks of each period and correspondingly propose how Geely responds to these risks,and what countermeasures have been taken to avoid financial risks,so that Geely successfully acquired Volvo.The final effect evaluation of how Geely acquired Volvo to control financial risks,and summarized the successes and shortcomings of Geely's acquisition of Volvo.In the discussion,the literature analysis method,inductive summarization method and comparative analysis method were used to conduct a comprehensive study on the financial risks of the Merger case.Finally,the evaluation of the financial risk control of the case will be carried out.For overseas mergers and acquisitions of other crossborder Merger companies in China in the future,no matter the identification of financial risks or the control measures adopted for financial risks,it has good reference significance.