Research On Merger And Acquisition Financial Risk Assessment And Avoidance Of Y Company

Under the background of favorable policies and Internet +,the Merger and acquisition and investment in cultural media enterprises have become a normal phenomenon.M&A and reorganization was meant to optimize the production and operation while integrate and promote the industrial upgrading,but it is rare that the M&A of cultural media enterprises can achieve strategic transformation and synergistic effect.Meanwhile,the asset-light characteristics of cultural media companies would often cause high premium M&A and there were numerous failed cases of M&A,such as the Panda Fireworks terminated its acquisition of Huahai Times,huge sums of goodwill decrease of Blue Focus overseas M&A.The causes behind the cultural media merger failures were very complicated and complex,such as unclear strategies,in violation of laws and regulations,integration fail or low efficiency,highly evaluated target enterprise,however,the lack of M&A financial risk management consciousness of cultural media enterprises were at its core.Therefore,it is of important theoretical and practical significance on how to effectively identify,evaluate and avoid M&A risks of cultural enterprises.Regarding the identification,evaluation and avoidance of M&A risks of cultural media enterprises,this paper applies the combination of theoretical research and cases analysis.Firstly,this paper reviews the research status quo and basic theories of M&A risks at home and abroad and summarizes the characteristics of M&A.Then,based on the case study of Y Company acquired A Company,it makes a detail identification and analysis of enterprise pricing risks,financing risks and payment risks and integration risks existed in M&A,and applies the fuzzy comprehensive evaluation method,through the establishment of risk factors and evaluation and expert scoring mechanism,create cultural enterprises M&A risk evaluation model,combined with the case,to determine that the risks of this M&A is relatively high therefore Y Company need to be cautious about the M&A.Finally,it proposes specific measures to avoid based on the M&A financial risks and advises that Y Company as well as the cultural media enterprises should choose appropriate targets in the future merger and acquisition activities,improve the capability of enterprise mergers and acquisitions and eliminate the information asymmetry so as to make a reasonable evaluation of enterprises and focus on the efficiency and methods of integration after M&A.