Research On Financial Risk Of Internet Enterprise Mergers And Acquisitions

With the popularization of information technology and the intensification of competition in the industry,more and more Internet companies are pinning their hopes on mergers and acquisitions to achieve strategic expansion,seize new market shares and enhance their competitiveness.The "Internet +" concept has accelerated the merger and acquisition of Internet companies.Promote Internet companies to a new stage.However,looking at the Internet mergers and acquisitions in recent years,failure cases are not rare.The reason is,first of all,M&A itself is a high-risk long-term investment behavior,so the process of M&A will inevitably encounter many risks.Secondly,China does not pay enough attention to the prevention and control of M&A risks.Scholars' research on M&A risks mostly stays at the theoretical level and lacks practical discussions,thus exacerbating the impact of M&A risks on Internet companies.Among all M&A risks,financial risk is particularly prominent.Because it runs through the entire process of M&A,it has extremely far-reaching effects on the enterprise and is very harmful.Therefore,financial risk is the most important factor affecting the success of mergers and acquisitions.Therefore,studying the financial risks of mergers and acquisitions and strengthening the prevention and control of financial risks are of great significance to the rapidly developing Internet companies at this stage.This article first uses the literature research method to summarize and summarize the relevant literature on the financial risks of corporate mergers and acquisitions at home and abroad.Based on previous research,combining the relevant theories of financial risks of mergers and acquisitions,it concludes that the financial risks of mergers and acquisitions mainly include pre-merger and acquisition Valuation risks,financing and payment risks in mergers and acquisitions,and financial integration risks after mergers and acquisitions.Based on this,the reasons for the financial risks of mergers and acquisitions are further analyzed.Then,combined with the typical case of Internet mergers and acquisitions of Company A and Company B.Through the whole process of reverting company A's acquisition of company B,the background of company A's acquisition of company B is elaborated.The in-depth analysis of how Company A identified potential financial risks and the causes of risk formation before,during,and after M&A,combined with the measures of Company A to prevent financial risks in the process of M&A The discussion has obtained the following enlightenment: First,before the merger and acquisition of Internet companies,they need to select appropriate merger and acquisition targets in accordance with their strategic layout,and do not blindly merge and acquire.Secondly,before the merger and acquisition,it is necessary to carry out a comprehensive investigation and select a suitable valuation method to accurately evaluate the value of the target enterprise,and prevent the valuation risk caused by information asymmetry.Then,in mergers and acquisitions,it is necessary to innovate financing methods in combination with its own financial situation,broaden financing channels and reduce financing costs.In the stage of mergers and acquisitions payment,try to avoid single payment methods and adopt mixed payment methods to reduce the financial pressure of enterprises.After the completion of the merger and acquisition,it is also necessary to strengthen the financial integration of the post-merger enterprise,promote the consistency of the financial goals of both parties,establish and improve the corporate financial organizational structure,and improve the corporate financial management system.Promote deeper integration between the two parties.Realize the scale effect of the enterprise.Only in this way can it help to improve the success rate of mergers and acquisitions of Internet companies and promote the long-term development of Internet companies.