Research On Financial Risk Analysis And Prevention Of Enterprise M&A

When the company's own production reaches a certain scale,whether it is trying to occupy a higher position in the market or expand its own business scope,mergers and acquisitions is undoubtedly one of the efficient means to achieve its purpose.As a component of cultural enterprises,in the context of the current macro-environment where cultural industries are highly valued and supported,coupled with their own creative technology,they have become a popular target company in the wave of mergers and acquisitions.However,as the market becomes more rational,there are more and more sequela of large-scale mergers and acquisitions.As financial activities run through mergers and acquisitions,risks also arise.Many cultural industries have seriously affected themselves due to the lack of protection against financial risks during mergers and acquisitions.Business conditions.Therefore,how to prevent and control the financial risks at each stage is of great significance to the realization of the merger and acquisition goals of the enterprise,and it is worthy of the attention and attention of enterprise managers.Therefore,based on the literature research method and case analysis method,this paper takes the financial risk and prevention of corporate mergers and acquisitions as the main research content,and selects China 's first listed animation company,Alpha Group Co.,Ltd.(hereinafter referred to as “Alpha Group”)and the most popular one.The case of M & A by Beijing 's April Stars Network Technology Co.,Ltd.(hereinafter referred to as “April Stars”)is the research object.Based on the theory and literature related to financial risk of mergers and acquisitions,carry out case analysis,and introduce the time process of the merger and acquisition parties and the merger and acquisition transactions after combing the background of mergers and acquisitions,and use the theoretical basis of the previous chapter to analyze the motivations of mergers and acquisitions.Then use some financial indicators to analyze the financial situation of Alpha Group before and after the merger and acquisition,and provide data support for the problem analysis later;then based on the light asset characteristics of the animation industry,focus on the financial risks of theAlpha Group merger and acquisition case,combining with Alpha Group.The corresponding practice of entertainment analyzes the value evaluation,financing and payment,financial integration and other risk factors existing before,during,and after M & A,and their causes;finally,the key valuations in the M & A were too high and the integration failed to meet expectations For specific issues such as effectiveness,corresponding financial risk prevention and countermeasures are proposed.Through full-text research,it is found that the lack of awareness and response to financial risks in all aspects of the merger and acquisition led to a high valuation risk and integration risk in the merger and acquisition,and the final merger and acquisition results did not meet the merger and acquisition target.The cultural industry is characterized by a lot of light assets,rapid policy changes,and high employee turnover in the industry,which determines that its valuation and integration risks will be higher in M & A financial risks.Therefore,for similar enterprises,managers should pay attention to the importance of financial risks when merging,and take into account the specific characteristics of the industry to conduct reasonable management of financial risks,improve the probability of successful mergers and acquisitions,enhance the competitiveness of enterprises,and speed up enterprises development pace.