Case Study Of S Company’s M&A Financial Risk

In a fiercely competitive environment,many companies use M&A as a means of expansion.However,the results of mergers and acquisitions are very different from the original intentions of the company,and even run counter to one another.Financial risk runs through M&A and is a key factor affecting the success of M&A.In the past five years,the transaction scale of Chinese M&A market has gradually increased,and the amount of M&A transactions has shown a steady growth trend with a cumulative increase of 44.43%.In 2016,the China Securities Regulatory Commission revised the Measures for the Administration of Major Asset Restructuring of Listed Companies and strengthened the adjustment of the M&A market.In 2017,due to the regulatory influence,the number and amount of M&A transactions of listed companies in China decreased significantly compared with 2016.Preventing the risk of mergers and acquisitions and improving the quality of mergers and acquisitions is a new requirement for the development of M&A activities in China.Therefore,it is of great practical significance to study the financial risks of M&A and to construct an effective financial risk control system framework for M&A.The paper uses case analysis method and qualitative and quantitative analysis method to establish a financial risk index evaluation system for enterprise mergers and acquisitions.Combined with the M&A activities of S company’s merger and acquisition company H,the main factors of “risk identification-risk assessment-risk analysis-risk control” are used to identify the key factors of financial risk factors of M&A,and the judgment matrix is constructed by using AHP to establish a fuzzy comprehensive evaluation model.,resulting in risk assessment data.According to the analysis of the financial risks of S company’s merger and acquisition of H company,the results are as follows: Due to the high risk of merger pricing and financial integration,the merger of S company failed.Get inspiration,and put forward financial risk control recommendations to provide reference for China’s corporate mergers and acquisitions financial risk control.