Research On Financial Risk Of Septwolves Acquisition Of Luxury Brands

In the modern market economy,the competition among enterprises is reaching ferver pitch.In order to play a role in the market,enterprises must expand their scale and build own brands.Corporate mergers and acquisitions can help enterprises to quickly enhance their competitiveness.However,the importance of financial risks in corporate mergers and acquisitions cannot be ignored.Therefore,investigate the types,causes and prevention of financial risks of corporate mergers and acquisitions.It is very necessary to happen.This paper summarizes and expounds the related theories of corporate mergers and acquisitions and their financial risks by reviewing and combing relevant domestic and foreign literatures.On this basis,a detailed analysis of the financial risks of the Septwolves luxury brand acquisitions case was conducted.Firstly,taking Septwolves to acquire several international luxury cases as research objects,and analyzed the four motivations Motivation of scale economic benefits,motivation of financial synergy,motivation of market forces and the motivation of transaction costs.Then it focuses on the financial risk issues in the acquisition of Septwolves,and analyzes the risk issues of pricing risk,financing risk,payment risk and integration risk in the process of merger and acquisition.and studies the causes and possible consequences.As well as the special industry situation based on the acquisition of international luxury brands by Septwolves,studying whether septwolves in order to quickly enter the high-end market,absorbing excellent teams to acquire luxury brand acquisitions,will affect the luxury brand's goodwill.Finally,this paper studies the key issues of enterprise mergers and acquisitions:pricing financing payment and financial risk control methods after merger,and takes the case of Septwolves as the specific research object.Based on the integration of financial risk control theory and control methods,the paper proposes corresponding risk prevention and control measures.