Financial Risk Analysis And Prevention Of H Company M&A Artists Company

In recent years,China’s film and television industry has achieved rapid development.With the increasing competition,the M&A activities in the industry become more and more active.Capital has gradually permeated every link in the industry chain of film and television industry.The content of film and television,the development direction of film and television industry and the creation and pursuit of film and television art are gradually influenced by the capital force.There are many opinions on this phenomenon.In particular,some film and television companies bind the artist’s resource through the way of the merger and acquisition of artists.The artist company has the characteristics of less tangible assets,short time and small size of the company than the traditional M&A,so it will face a higher premium and more premium than the traditional enterprise.Large value uncertainty and so on,and thus bring more financial risks.Whether this kind of capital intervention can promote the healthy development of entertainers and film and television industry is difficult to measure.There is widespread controversy in the industry.This paper makes a full analysis and excavation of the environment and competition situation of the film and television industry,studies the financial risk theory of merger and acquisition and the previous literature related to the financial risk of merger and acquisition,and divides the financial risks into value assessment risk,financing and payment risk and integration risk.This article chooses two cases of H company’s merger in 2015 as an analysis object,and analyzes its financial risk.In the value assessment risk,because the subjective degree of evaluation is high,it is difficult to draw an objective conclusion on the value of the artist.The real assets of the artiste company are few,and the overestimation of the artists’ value leads to a large number of goodwill after merger and acquisition,forming goodwill risk.In the risk of financing and payment,H company has carried out large debt for merger and acquisition.The important financial indicators related to debt are highly reactive,and the result is more pessimistic,forming a larger financial crisis risk.The H company’s M&A consideration is paid by short-term full cash,which greatly reduces its liquidity and generates liquidity risk.In the stage of integration,this article through the analysis of the event analysis shows that the outside is not optimistic about the merger and acquisition,the value of the capital market of H company is affected.Through the analysis of the profitability index,the profitability of H company has not reached the expectation,and its sustainable growth force has also been affected and continued to decline.Through the analysis of these financial risks,this paper puts forward some risk prevention measures for the case of H company M&A artists company.In the value evaluation,H company needs to clear the use of the artist resources and actively adopt the best means of evaluating the artist value.In financing and payment,H company needs to reasonably estimate the financing needs and maintain a good capital structure.In the integration stage,H companies need to fully guarantee the profitability of the M&A companies,maintain their reputation and strengthen the relevant financial early-warning mechanism..