A Case Study On The Financial Risk Of Baiyuan Pants M&A Global E-Purchase In Industry

With the rapid development of science and technology,the Internet economy has a strong impact on traditional retail enterprises.As an important part of the traditional industry,the clothing retail industry is the first to be affected by the Internet economy The traditional retail enterprise industry structure is old,the technology is backward,has no way to adapt to the development of The Times.At the same time,the price of raw materials is rising,the rent of shops is expensive,the products in the clothing retail industry are overstocked,and the profitability of enterprises is getting worse and worse.As a result,the development of domestic clothing enterprises has encountered unprecedented obstacles.In order to change the traditional retail enterprises are faced with the situation,looking for a new development direction for its,firms began to gradually transition to the Internet industry,and cross-border mergers and acquisitions will become the best choice for the transformation of enterprise development,through cross-border transformation,traditional enterprise can mutual fusion with emerging enterprises,emerging enterprise advanced technology and traditional enterprise brand effect together,complement each other,add vigor for the traditional enterpriseThrough merger and acquisition activities,baiyuan pants industry has strided forward to the development direction of cross-border e-commerce global e-shopping,completely changed the difficult operation situation and successfully transformed itself.But the enterprise merger and acquisition activity itself is a high risk activity,if not taken seriously,will produce all kinds of financial risks.Therefore,this paper analyzes the financial risk of the merger case.Firstly,it introduces the theories related to the financial risk of the merger and the basic situation of both sides of the merger,and elaborates on the merger motivation,process and results of the merger case.Secondly,the pricing risk,financing risk,payment risk and financial integration risk of baiyuan pants industry in the acquisition of global e-shopping were discussed from three aspects before,during and after the acquisition.In the end,the paper gives some enlightenment to the various risks and risk aversion in the merger and acquisition of baiyuan trousers industry.This case study found that the traditional garment industry can promote clothing enterprise transformation and upgrading through cross-border m&a,but reasonable to avoid the possibility of financial risk in m&a events,mergers and acquisitions mergers and acquisitions party before to pass the professional organization of audit and assessment,and through the performance pledge and performance compensation agreement reasonable avoid price risk;In merger and acquisition,enterprises should adopt multi-channel financing and hybrid payment to avoid financing and payment risks.Only by effectively integrating the financial systems,financial institutions and financial personnel of both enterprises after merger and acquisition can the merger and acquisition enterprises fully realize synergies,improve their profitability and enhance their value...