Research On Financial Risk Control Of Internet Enterprise M&A

Internet development has led to increased competition among enterprises.Based on the needs of strategic expansion,enterprises can achieve this through mergers and acquisitions to expand scale and increase market share.The profits that enterprises get from mergers and acquisitions also bear risks,and the financial risks are the most prominent.Throughout the multiple M&A failure cases,it can be found that the main reason for the failure of M&A is that the company did not have enough understanding of the financial risks of M&A in the early stage of M&A,and did not pay enough attention to the financial risks in the purchase,leading to prevention and control.The ability to risk is weak.Therefore,it is necessary to conduct a more in-depth exploration of corporate mergers and acquisitions.This article consists of five parts.The first part is about the background and meaning,the literature review at home and abroad,and the framework.The second part outlines the financial risk characteristics,causes and control methods of Internet enterprise mergers and acquisitions.The third part introduces the case of Baidu's acquisition of 91 wireless,and analyzes the risk of mergers and acquisitions and the financial risks in the process of mergers and acquisitions.The fourth part mainly discusses a series of risk control measures made by Baidu when it acquires 91 wireless and some inspirations brought to other enterprises in the same industry through the case.The last part summarizes and forecasts the full text.Through the exploration of multiple mergers and acquisitions cases,it is known that the inaccurate evaluation of the target company's value,improper financing methods,unreasonable payment methods,and improper integration are the main reasons for financial risks,and also the reasons for the failure of mergers and acquisitions.Therefore,it is necessary to analyze the financial risks occurred in the mergers and acquisitions of enterprises,and provide reference and reference for the mergers and acquisitions of Chinese enterprises.