Case Study On Financial Risk Of JD Company Merging The First Store Company

With the development of the Internet,Internet companies have sprung up like the buds after the spring rain.Today,a large number of large-scale emerging companies have formed.In order to have a place in the Internet market,Internet companies can do their best,one of the means is to start mergers and acquisitions before other companies.Beginning in 2017,the economic environment has continued to deteriorate,which has a major impact on all industries.However,the number of Internet companies' mergers and acquisitions has not decreased,and remains at a very high level.Focus on the analysis and research of financial risks in the process of mergers and acquisitions,whether it is the success of the mergers and acquisitions of Internet companies,or the company's subsequent progress has a considerable role in promoting.Although the Internet industry has entered the middle stage of development,there are numerous cases of failed mergers and acquisitions that ignore financial risks.How to identify financial risks and prevent financial risks is a top priority for M&A companies.This article is based on the collection of existing classic literature,based on the theory of financial risk in the process of corporate mergers and acquisitions,and from the understanding of Internet companies as the starting point.Based on the concepts and theoretical foundations involved in the process.Through the description of the merger and acquisition motivation,merger process,and merger results of Jingdong M&A No.1 Store,and detailed analysis of pricing risks,financing risks,payment risks,and financial integration risks in M&A cases,the comprehensive financial risks faced during the merger and acquisition process are obtained;In the final stage of the article,it puts forward relevant precautionary measures and control suggestions that can be taken in the face of financial risks of Internet mergers and acquisitions,and explains them one by one.There are few successful or typical cases in China's Internet enterprise mergers and acquisitions,and JD.com M&A is a relatively typical case.It is hoped that through the study of this case,a reasonable analysis of the risks facing the Internet companies today and the means they can take,and the Internet companies that are about to conduct mergers and acquisitions or provide ongoing theoretical support and related suggestions are provided.