Research On Financial Risk Management Of Enterprise Mergers And Acquisitions

Since the 1990s,corporate mergers and acquisitions have been on the rise,and more and more companies hope to expand their market share through mergers and acquisitions,increase their core competitiveness,and achieve their development goals However,compared with the traditional autonomous development model,the main parallel companies and the merging companies often have differences in their industry,organizational structure,human resources,development needs,etc.,making the main parallel before the mergers and acquisitions.Different stages such as the middle,late,and later face different risks.Among them,financial activities run through M&A activities.M&A activities will inevitably face financial risks.Successful response to financial risks is a key factor affecting the success of M&A activities.For this reason,it is of great practical significance to study the causes of mergers and acquisitions financial risks,how to identify them,and how to effectively prevent them,so as to ensure the effective conduct of mergers and acquisitions transactions,and to ensure the healthy development of China’s M&A transactions.Based on the related theories of corporate financial risk of mergers and acquisitions,this article selects the case of LeTV as an empirical case and conducts research on the following aspectsFor the identification and prevention of financial risk in mergers and acquisitions of asset-light companies,this paper uses a combination of theoretical research and case analysis.First,it reviews the domestic and foreign research status and basic theories of mergers and acquisitions risk,and summarizes the scope of light asset enterprises and the characteristics of mergers and acquisitions;Secondly,using the LeTV M&A and easy-to-go event as a case,after a systematic review of the pre-merger strategy acquisition phase,the M&A strategy implementation phase and the post-merger integration phase risk of light asset companies,the unique risks of this M&A are identified.First,easy-to-use vehicles are in the stage of development that urgently needs to expand the market to invest a large amount of funds.The growth is good but the profitability is poor.The financial valuation of the easy-to-use vehicles before the merger and acquisition is inaccurate;Second,LeTV.com aims to improve its independence.Some music ecology,continuous implementation of mergers and acquisitions,liquidity shortages,and payment methods to choose cash payments,which further exacerbated LeTV’s financial risks;Third,LeTV financing repeatedly choose major shareholders to reduce holdings or equity pledges,financing risk is high Fourth,after the mergers and acquisitions in the integration,there are unfavorable integration in the financial system and corporate culture.Phenomenon,resulting in a huge loss of existing customers and personnel.Subsequently,it summarized the financial risk prevention measures for LeTV’s mergers and acquisitions,including the correct financial evaluation before mergers and acquisitions,and avoided financial financial cash pressure risk by selecting a reasonable financing and payment method.After the merger and acquisition,the financial and cultural aspects of the company were strengthened.Integration and so on.