Research On Financial Risk Identification And Preventive Measures Of Lever Acquisition

Leveraged Buyout is an important means and method for China's economic restructuring during the all-round economic reform period.It is also a merger and acquisition method that meets China's economic development needs.It will develop rapidly and unmversal application during the development of China's economy in the future.this requires our country's academia to conduct more comprehensive and detailed research on Leveraged Buyout,thus providing important theoretical support for the service of China's economic reform and transformation and enterprise Leveraged Buyout.This paper introduces the concept of Leveraged Buyout and the current situation at home and abroad.Based on information asymmetry theory,capital structure theory,value underestimation theory,free cash flow theory and other related theories,analyzes and summarizes the risks that may exist in the process of mergers and acqulsitions,and selects the case of JCET to acquire STATS ChipPAC for financial risk identification and prevention countenneasures for Leveraged Buyout.Discussed the acquisition background of JCET,identify financial risks that arise during the acquisition process,and targeted financial risks prevention measures.Through the research of this paper,forming an objective understanding of Leveraged Buyout and its financial risks,and putting forward preventive measures against financial risks can provide some theoretical guidance for Leveraged Buyout of Chinese enterprises,and provide theoretical reference for the prevention of Leveraged Buyout.Due to the short history of Leveraged Buyout in Ch China,there are relatively few relevant theoretical researches on Leveraged Buyout.Through this study,we can further enrich the theoretical research content and achievements of China's Leveraged Buyout.