Research On Financial Risk Of Internet Companies’ M&A

With the emergence of the Internet + concept,Internet companies have sprung up like mushrooms,and a large number of emerging enterprises with large scale and strong capabilities have been formed so far.In order to occupy a place in a highly competitive market environment,Internet companies are eager to develop M&A business.Although the economic environment has continued to affect the Internet industry since 2017,the volume of M&A transactions has remained at a high level.It is worth noting that M&A is a complex and irreversible behavior,and there are much risks that will lead to merger failure,especially the financial risk throughout the whole process is the most critical.Analysing financial risks,it will not only help the smooth progress of Internet companies’ mergers and acquisitions,but also contribute to the subsequent development of the company.The Internet industry has entered the mid-term development period,and the financial risks in M&A have led to more and more cases of mergers and acquisitions failure.How to prevent financial risks is a top priority for the Internet.Summarizing the previous literature,based on the theory of financial risk of Internet mergers and acquisitions,first understand the concept and characteristics of current Internet companies,Internet companies mergers and acquisitions and financial risks,and analyze the development status of Internet mergers and acquisitions and the motivation of mergers and acquisitions,analyze Internet companies Financial risks in the process of mergers and acquisitions.This includes valuation risks before mergers,financing payment risks in mergers and acquisitions,and financial integration risks after mergers and acquisitions.Taking Alibaba’s merger and acquisition as a typical case,in-depth study,the process of reducting mergers and acquisitions,combined with the basic situation of Alibaba and Hungry,and the motivation of mergers and acquisitions,analyzing the financial risks in the process of mergers and acquisitions and the possible causes of such risks,the research findings The financial risk of M&A of Internet enterprises exists in the three stages of M&A,the pricing stage,the financing payment stage and the integration stage.The financial risk in the pricing stage mainly comes from the uncertainty of the valuation of the enterprise,and the financial risk in the financing payment stage is manifested in In the transaction structure,the integration phase is mainly due to the inadequacy of financial integration.The article puts forward corresponding suggestions on how to deal with the financial risks of each stage.Alibaba’s M&A is a typical M&A case in China’s current Internet industry.I hope that the analysis of this case will help the Internet companies and similar companies that are orwill participate in M&A to provide theoretical guidance and suggestions to reduce M&A enterprises.Financial risks,enhance the competitiveness of enterprises,and promote the development and progress of Internet companies.