Research On Financial Risk Of Qumei M&A Ekornes ASA

The development of cross-border investment by Chinese enterprises is growing faster.At present,cross-border M&A is the main way for Chinese enterprises to directly invest abroad.From one-way "bring in" to encouraging "go out",our country' s enterprises have truly begun a journey of globalization.The Deloitte survey report shows that nearly half of the companies' cross-border M&As have not achieved the expected results.In practice,the financial risks of M&A have greatly affected whether the company can achieve the expected results.Financial risks of M&A exist at all stages of M&A,and companies that fail to respond correctly will bring unnecessary economic losses.Through the combing of the literature and related theories,the paper sorts out the analytical framework suitable for case analysis.The paper first introduces the choice of case,the situation of both parties and the process of merger and acquisition,and identifies the financial risks of Qumei acquired Ekornes ASA according to the process of merger and acquisition.Then,the qualitative and quantitative methods are used to evaluate the identified financial risks of mergers and acquisitions.Relatively speaking,Qumei has lower financing risk,and the pricing risk,payment risk and financial integration risk are higher.On the basis of assessing the financial risks of M&A,the paper summarizes and evaluates Qumei's measures to deal with financial risks.It can be known that Qumei's risk management measures to deal with pricing risk effectively control financial risks,and deal with financing risk and financial integration risk reduced the financial risk.The risk management measures to deal with the payment risk are reasonable but the payment risk still exist,.Through systematic research on the in-depth details of the case,it can provide reference for other companies to prevent the financial risks of cross-border M&A,that is,to conduct long-term understanding of the target enterprises,and to use an intermediary to make a reasonable valuation;to plan financing solutions in advance,broaden financing channels,and rationally arrange financing structures;to choose a payment method suitable for the company,use financial instruments to avoid the risk of exchange rate fluctuations;to focus on the integration of financial systems,and formulate the financial policy after the merger.Before the merger,the enterprise can choose the suitable measure for the financial risk prevention to apply to the actual mergers and acquisitions according to the results of the identification and evaluation of the financial risks of the M&A.