Research On The Financial Risk Of Corporate Mergers And Acquisitions

In the past decade of China's rapid economic development,domestic enterprises have set off waves of mergers and acquisitions in acquisitions and restructuring,but the failure rate has continued to increase.Although corporate mergers and acquisitions have historically been proved to be an important means for corporate expansion and development,there are many risks in corporate mergers and acquisitions,especially financial risks.Therefore,it is of great practical value to discuss the financial risks of its enterprises in mergers and acquisitions.The development of China's home appliance industry has formed a mature market environment.To break through the limitations of enterprises and expand their market resources,enterprise mergers and acquisitions have become the first choice for enterprises.Research on financial risks is particularly important.Konka Group,as a star but not a leading enterprise in the home appliance industry,wants to quickly grab more market resources in the domestic home appliance market,and corporate mergers and acquisitions have become the first choice.The operation of Konka Group's acquisition of Henan Xinfei Electric Appliance in 2018 has attracted widespread attention.Konka's control of financial risks in the process of mergers and acquisitions is the key to this merger case.This article takes Konka Group's acquisition of Henan Xinfei Electric Appliance as an example to discuss the financial risks of corporate merger and acquisition risks.First,it briefly introduces the research status of the financial risks of domestic and foreign corporate mergers and acquisitions,and then integrates the relevant literature to the financial risks of corporate mergers and acquisitions Make a theoretical overview to provide a theoretical basis for discussing the case of Konka Group's acquisition of Henan Xinfei Electric Appliance,and discuss the identification of pricing risk,financing risk,debt repayment risk and integration risk encountered in corporate mergers and acquisitions through cases,and identify the cases The financial risks of mergers and acquisitions of enterprises are evaluated by qualitative and quantitative evaluation methods.Based on the evaluation results,the control methods adopted by the merger and acquisition companies in the case to deal with financial risks are described and analyzed,and the financial risks of the cases are comprehensively analyzed.A comprehensive and holistic analysis to discuss the advantages and disadvantages of Konka Group's merger and acquisition of Henan Xinfei Electric in identifying and evaluating the financial risks of mergers and acquisitions compared with the historical experience of corporate mergers and acquisitions,and evaluating the advantages and disadvantages of financial risk control methods for corporate mergers and acquisitions.Finally,the evaluation and control of M&A financial risk are summarized,and valuable enlightenment is summarized.Throughout the overall M&A,effective financial risk early warning mechanism is formulated.This article hopes to provide effective and valuable experience and theory for the M&A of the home appliance industry through the case of Konka Group.