Reseaech On Financial Risk Of Enterprise Merger And Acquisition

With the development of the socialist economy,economic activities among enterprises have become more frequent.As M&A itself has the advantage of rapidly expanding the company's size,increasing market share and enhancing the strategic position of the enterprise industry.Therefore,most of the company's senior leaders tend to make their own companies more competitive through mergers and acquisitions,but not all mergers and acquisitions are good for the company,no harm,even for a large number of actual mergers and acquisitions.The study of the process found that there are many companies that do not bring more benefits to the company.In fact,there are indeed many companies that are blindly engaged in mergers and acquisitions,or because of poor integration after mergers and acquisitions,resulting in mergers and acquisitions results contrary to their original intentions.Mergers and acquisitions are a double-edged sword.Enterprises need to decide whether they should implement mergers and acquisitions based on their own business conditions,development strategies,and the ability to control the risk of mergers and acquisitions.There are various risks in the M&A process,including: selected industry risks,related national policy risks,and M&A financial risks.The financial risk of M&A has the greatest impact on the M&A process,which can determine whether the M&A activity is successful or not.Based on the related theoretical study of M&A financial risks among enterprises,this paper adopts the case analysis method and takes H company to acquire T company as the research object.Firstly,a brief introduction to H company and T company was carried out,then the merger motives and mergers and acquisitions process of H company were analyzed in detail.Finally,the paper analyzed the financial operation status of H company before and after the merger: mainly analyzed the profitability and solvency of H company.,operational capacity,growth capacity.After analysis,it was found that after the acquisition of T company by H company,the solvency,profitability and operational capacity have declined to varying degrees.Then it is studied and analyzed from four aspects: pricing evaluation,financing behavior,payment method selection and financial integration.After that,the financial risks in the process of H company's acquisition of T company were determined,mainly: the valuation of T company's enterprise value was high,H company's financing method was single,H company's payment method was single,and financial integration after merger and acquisition was not smooth.Then,according to the problems identified in the process of H company's acquisition of T company in this paper,the causes of the problems in the M&A process are analyzed.Finally,the author draws the enlightenment of preventing the financial risks of M&A in the relevant M&A activities of enterprises.The main reasons are: to evaluate the value of T company assets more accurately,to diversify the financing methods of H company M and to choose a reasonable payment.The way,H company and T company should strengthen financial integration.