Financial Risks Of COSCO’s Merger And Acquisition Of OOCL Analysis And Control Research

With the development of China’s economy and the modernization of management awareness of corporate managers,M&A have gradually become the primary way for more and more companies to become bigger and stronger,and to achieve technological innovation and development.However,M&A are a "double-edged sword".While bringing benefits to enterprises,they will also breed corresponding risks and negatively affect the benefits of M&A.Among them,the most critical is the financial risk of M&A.Therefore,how to identify and control the financial risks of corporate M&A is of great significance to the success of M&A.This paper uses the literature review method and case analysis method to analyze and study the financial risks of corporate M&A based on the model of COSCO acquisition of OOCL.First of all,the background and significance of the article’s writing are introduced,and the research literature on financial risk of M&A at home and abroad is used to summarize the research status of M&A.Secondly,the related concepts and theories of M & A are elaborated,which provides a theoretical basis for the narrative analysis later.Then,introduce the two parties of the merger and acquisition,namely COSCO and OOCL,analyze the specific merger and acquisition process,and combine relevant data to identify the financial risks in the entire merger and acquisition process.Finally,in light of the actual situation of the enterprise,the pricing risk of the wrong evaluation of the value of the target company for M&A,the unreasonable financing risk of the funding source channels,the improper payment risk of the payment method of the merger consideration,and the existence of Financial integration risk and other four aspects of specific financial risks put forward countermeasures,and summarize how to effectively control the financial risks of M&A.Financial risks exist in the beginning and end of corporate M&A.A comprehensive and systematic study and analysis of the main financial risks faced in M&A,and the formulation of effective control strategies are the key to controlling financial risks and improving the success rate of M&A.It is hoped that this case study can provide reference for the prevention of financial risks in future M&A,and based on this experience,increase the probability of successful M&A.