| As we know,the human society is developing constantly.The innovation of technology has given birth to the internet,which has not only changed people's previous ways of living but also influenced business model of various enterprises conscientiously.The rise of e-commerce is bringing a strong brunt to the traditional trading practice,hence the traditional retailing is facing more new challenges.In pursuing a better way to survive and forming advantages of industry scale,more and more companies will consider merging and acquisition as the best business expanding manner to strengthen the core competitiveness,which leads to a extraordinarily large base of company merging and restructuring transactions in China.The universal phenomenon of related party M&A are existing in M&A trading,on account of the high fiequency,enomous coverage and high percentage related M&A trading accounts for in M&A trading market,attentions should be paid in this area.What's more,there is no promise for the success of M&A transaction,during the process of M&A transaction,various risks are accompanied,such as the risks brought by unstable market environment,the change of legislation,potential financial condition and effectiveness.Among these risks,financial risk is the concentrated reflection of currency,therefore,the control of financial risk is essential.Both sides of the M&A transaction must strengthen the understanding of the financial risk in M&A,and should be fully aware of the motivation of the trading.Reasonable strategy should be made and risk management system should be built.After the transaction,companies should reorganize the finance effectively.In this way,we can effectively control the financial risks associated with M&A.All these practices will play a positive role in both security and success of the M&A trading.Considering the importance of the control of financial risk,using literature research method to summarize and analyse the international relevant research,explaining and summarizing related M&A trading theories,analyzing the current situation and motivation of M&A trading in China.On that basis,taking Wangfujing Group's merging and acquiring Belmont as an example,using the case analysis method to analyze the motivation and process of the related M&A trading,the data analysis method is used to analyze the related M&A results.According to the chronological order of related M&A transaction,this paper studies various types of financial risks that Wangfujing Group may have in different stages of related M&A transactions and their causes,analyzes the strategy of financial risk control adopted by Wangfujing Group,draws lessons from the experience and points out that enterprises.Pointing out the key issues that should be noticed in the related M&A and the related suggestions,which is of great importance to the control of the financial risk associated with the merger and acquisition of the enterprises. |
