Research On Risk Control Of "Snake Swallowing Elephant" Cross-Industry Merger And Acquisition

In recent years,as China’s economy is in a critical stage of transformation and upgrading,many traditional industries have entered a recession stage with overcapacity,and it is urgent to adjust the structure and change the growth mode.In order to adapt to the new normal of economic development and realize the goal of pursuing high returns,many traditional enterprises choose to break the routine,conduct cross-industry mergers and acquisitions,make strategic decisions on business transformation,optimize the industrial layout and put the company on the road of diversified development.At the same time,in terms of the mode of merger and acquisition,Chinese enterprises have also broken the situation of "combination of strong enterprises" and "combining strong enterprises with weak ones",and a new mode of "combination of strong enterprises with weak ones" has emerged,which is beneficial for some weak enterprises to obtain strategic resources,expand business areas,and improve the core competitiveness of enterprises.The risks of cross-industry mergers and acquisitions are complex,and the failure of risk assessment and control in the process of mergers and acquisitions is frequently seen.Therefore,it is very important to study the risk of cross-industry mergers and acquisitions.This paper selects the case of cross-border merger and acquisition of real estate brokerage companies by traditional commercial retail enterprises in China,and makes an in-depth discussion on the merger and acquisition of I love my home brokerage company by kunbaida A.Taking the merger and acquisition risk as the entry point,the paper focuses on the risk assessment and risk control of "weak and strong" mode.First of all,based on the case introduction of the merger of kunbaida A and I love my home,the relevant theories of risk management are utilized,we evaluated the risk of acquisition by kunbaida A based on internal and external aspects.Risk is mainly divided into mid cross-industry mergers and acquisitions in the early period of the enterprise strategic risk,transaction risk,integration risk and external risk,cross-industry mergers and acquisitions again,combined with the real estate intermediary industry operation compliance with the national policy level after mergers and acquisitions risk control strategy is discussed,combined with kunbaida A merger I love my house broker company A few years before and after mergers and acquisitions financial statement data to measure the success of mergers and acquisitions.Finally,the paper proposes relevant strategies to control the risk of merger and acquisition,so as to provide reference for the future research on "weak and strong" cross-industry merger and acquisition and its risk control.Kunbaida A’s successful merger and acquisition I love my home has become A typical example of how to "be strong with weak" in the Chinese merger and acquisition market,and its successful experience is worth learning,which includes clear merger and acquisition motivation,appropriate merger and reasonable risk analysis and risk control.