H Aquired T Manufacturing Enterprise M&A Financial Risk Research

With the advancement of China Manufacturing 2025,the industrial restructuring process has accelerated and the industry competition has become increasingly fierce.As one of the important means to help enterprises absorb superior resources and promote industrial structure optimization and upgrading,more and more traditional manufacturing companies choose to achieve transformation and upgrading through mergers and acquisitions.However,according to the M&A data released by PricewaterhouseCoopers in 2018,nearly 50% of domestic M&A failed due to various reasons.The complexity of M&A itself exposes it to multiple risks,and improper management of risks is a key reason for the failure of M&A.Among the many risks,financial activities are inevitable because financial activities run through the whole process of enterprise mergers and acquisitions.Managing and controlling financial risks is crucial to improving the success rate of M&A.In this regard,this paper will analyze the risks in M&A from the financial perspective,and study the typical failure cases of H manufacturing companies to acquire T companies,combine the theoretical results of previous research with the actual merger cases,and explore the management of financial risks in M&A.This paper firstly combs the theoretical research results of financial risk identification,evaluation and control of domestic and foreign M&A,and provides theoretical support for the case analysis of the following papers;then reviews the basic situation,financial status,motivation of mergers and acquisitions,and specific implementation of M&A.Process and final result.On this basis,the case is deeply analyzed,and the financial activities carried out before the merger,merger and acquisition,and after the merger and acquisition,combined with the characteristics of the manufacturing industry,identify the financial risks that may exist in the case of the merger.Then,according to the identified financial risks,the specific countermeasures taken by H in the process of acquiring T company are analyzed,and the results of the control are evaluated and analyzed.In view of the lack of overall risk management planning in the financial risk management of H Company and the unreasonable evaluation of itself and target enterprises,specific improvement measures are proposed.According to the analysis of the financial risk management of the whole process of case M&A,the financial risks run through mergers and acquisitions,mergers and acquisitions,and mergers and acquisitions,mainly including pricing risks,payment risks,debt repayment risks,and financial integration risks after M&A.However,H's lack of overall management awareness of M&A financial risks and unreasonable evaluation of itself and the underlying companies are the main reasons for the failure of M&A.Enterprises should form an overall financial risk management plan in response to M&A activities,and use multi-funded payment methods and M&A agreements.The paper puts forward specific financial risk management suggestions based on the problems existing in the process of financial risk management in H merger and acquisition company T,in order to provide positive suggestions for the actual development of manufacturing M&A,and improve the management ability of M&A in the industry.