Research On Financial Risk And Coping Of Sunac China Merger And Acquisition Company Wanda Business

With the deepening of economic globalization,M&A has gradually become an important way for enterprises to expand their own scale.Under the dual background of strict macro-control policy of real estate in China and increasing market competition,real estate enterprises through mergers and acquisitions to achieve scale expansion,as well as business mix,mode switching,industrial expansion and other diversification and new business transformation.However,for capital-intensive real estate enterprises,whether M&A can achieve strategic development,its M&A has a financial risk and coping research is very important.Sunac China is the highest rate of M&A in real estate enterprises in 2017 and 2018,the enterprise has a certain representative.This article will choose the biggest case of M&A of Sunac,which is the merger and acquisition of WanDa Commercial,as the research object,in order to study the financial risk and control of its mergers and acquisitions deeply and summarize the inspiration.According the literature review method,this paper sums up the financial risk and controls of M&A based on the existing theoretical achievements.And on this basis,expounds the concept,type and financial risk control method of M&A of financial risk,which provides a theoretical basis for the later text.Then,using the case analysis method,this paper makes an in-depth study on the financial risk and control of the merger and acquisition of WanDa Business in China,analyzes the case from four aspects of assessing risk,financing risk,payment risk and financial integration risk,and draws the following conclusions.First,through the company's internal professional M&A team and hired professional evaluation companies to conduct comprehensive and in-depth due diligence on the WanDa culturaltainment project and scientifically and rationally assess the value of the enterprise,to a certain extent,to avoid pre-merger assessment risk.Second,reduce financing risk by doing sufficient financing in advance and optimizing the financing structure strategy.Third,delaying payment methods and accelerating the return of funds to control of enterprise cash flow security,and then reduce the risk of payment.Fourth,enhancing the ability of its own subject to reduce the risk of debt service caused by the early problems.And control the risk of financial system integration by formulating appropriate integration strategies.And further cncluded that Sunac China to a certain extent reduce the financial risk of M&A,but in the early problems caused by debot service risk needs to further strengthen prevention.Finally,based on the analysis of financial risk and control of this merger and acquisition,the following enlightenment is drawn: M&A should scientifically and rationally evaluate enterprise value,optimize enterprise financing structure,adopt suitable payment methods,enhance the ability of enterprise subject to resist risk,and formulate appropriate financial system integration strategy.