Research On Financial Risks In H Company’s Continuous Mergers And Acquisitions

With the development of the global economy,M & A activities are playing an increasingly important role in the global economy.Driven by the wave of mergers and acquisitions,not only has the worldwide industrial structure been effectively adjusted,but the process of economic globalization has also gradually accelerated.However,according to a large number of studies on Chinese companies ’M & A cases,the success rate of Chinese companies’ M & A is not very high.Many risks will lead to the failure of mergers and acquisitions,one of the important factors that affect the success rate of mergers and acquisitions is financial risk.Therefore,it is necessary to fully understand and study the types of financial risks generated in mergers and acquisitions,their causes,and the different financial risks corresponding to each merger and acquisition phase to manage and control financial risks and improve the quality of corporate mergers and acquisitions.Not only that,the research in this article also provides a reference case for controlling and preventing financial risks in China’s corporate mergers and acquisitions.This article selects the continuous merger and acquisition events of Company H in the past five years as a case,based on the analysis of the financial data of Company H to identify the financial risks in the process of continuous mergers and acquisitions,and puts forward specific risk prevention recommendations for the identified risks.There are five partsin this article.The first part is the introduction,including the research background and technical route;the second part is the theoretical basis and literature review;the third part is the case overview;the fourth part is the financial risk identification of H company’s continuous mergers and acquisitions;The fifth part is the financial risk prevention suggestions of H company’s continuous mergers and acquisitions.The details are as follows.This article first introduces the relevant theories of corporate mergers and acquisitions,then introduces the definition of continuous mergers and acquisitions,the motivation of continuous mergers and acquisitions,the performance of continuous mergers and acquisitions,and the financial risks in continuous mergers and acquisitions,which lays the foundation for the following research.Secondly,taking H Company as a case study object,introduced H Company’s M & A environment from three angles of industry environment,economic environment,and institutional environment,then summarized the continuous M & A events of the past five years and analyzed H Company The motivation of continuous mergers and acquisitions,and analyzed the short-term performance of H company’s continuous mergers and acquisitions through the event research method.Next,based on the company’s financial data,the financial risk in continuous mergers and acquisitions is analyzed from the perspective of pricing,financing,payment and integration,and the Atman model is used to analyze the key factors that affect financial risk.After analysis,it was found that although continuous mergers and acquisitions have greatly increased H ’s asset size and operating income,and have also achieved certain financial synergy and management synergy,H’s profitability,operating ability,and development ability have declined to varying degrees,The key is that companies cannot generate enough cash flow to pay for increasing debt every year.This article summarizes the financial problems of enterprises in continuous mergers and acquisitions,and then puts forward four suggestions from the perspective of continuous mergers and acquisitions.At the same time,this article recommends that Company H can strengthen its short-term operating capacity and relieve cash flow pressure by strengthening its main business,strengthening budget management and selling non-core assets in the short term;strengthening internal control in the medium and long term to enhance its risk warning capabilities,As early as possible to find and deal with financial risks as early as possible.This article conducts research on H company’s continuous mergers and acquisitions,hoping to enable H company to strengthen its risk identification and coping ability in future mergers and acquisitions,improve its risk management level,and provide some reference opinions for the research on M & A of shipping companies.