Research On The Financial Risk Of Internet Enterprise M&A

M&A is a complex and irreversible act,in which there are a lot of risks that will lead to the failure of M&A,especially the financial risks throughout the whole process.If the financial risks are analyzed and studied,it will not only help Internet enterprises to carry out mergers and acquisitions smoothly,but also help the subsequent development of enterprises.As the Internet industry enters the middle stage of development,there are more and more cases of merger failure caused by financial risks.How to prevent financial risks is the top priority for the Internet.On the basis of summarizing previous literature research,this paper first to get to know the current concepts and theoretical basis of enterprise merger and acquisition and the financial risk of enterprise merger and acquisition,and introduces the case of Alibaba's merge Ele.me in combination with the development status and characteristics of Internet enterprise merger and acquisition.About case analysis,firstly introduces the basic situation of mergers and acquisitions both sides,secondly introduces the M&A process,and the M&A motivation is analyzed,on the basis of above research,it is divided into the pricing risk before the M&A,financing payment risk in M&A and risk of financial integration after the merger,then respectively the financial risk of the three phases of the M&A performance and the causes were analyzed,and on that basis,Constructed the financial risk evaluation index system of Alibaba's acquisition of Ele.me,and using expert scoring method,analytic hierarchy process(ahp)and fuzzy comprehensive analysis method to evaluate the financial risk of M&A.It is found that the financial risk of Alibaba in the pricing stage mainly stemsfrom the limitation of the enterprise value evaluation method,the financial risk in the financing and payment stage is manifested in the cash flow,and the financial integration stage is mainly due to the incompatibility of the business model.Then,on the basis of the evaluation,this paper proposes corresponding financial risk countermeasures for Alibaba's merger with Ele.me,hoping to serve as a reference for other Internet enterprises that are going to carry out mergers and acquisitions.