Case Study On Financial Risk Control Of Infore Enviro’s Merger With Zoomlion

In recent years,China’s economic development is gradually moving towards the stage of transformation,and industrial development is in the period of old and new change.At this stage,many enterprises are stagnant and it is difficult to keep up with The Times.In order to solve the dilemma,enterprises began to seek for extension and promote the vigorous development of enterprises through mergers and acquisitions,so as to realize scale economy and industrial chain economy and complete the strategic transformation of enterprise diversification.As the global energy problem becomes more and more prominent,the environmental protection industry has become an important new industry in China.During the 12 th Five-Year Plan period,the state has made a long-term plan for the development of environmental protection industry,taking green environmental protection as a new concept for the development of environmental protection enterprises in the future.In the face of such development opportunities,environmental protection enterprises have been vigorously developing their own industries through mergers and acquisitions.However,the success rate of M&A in China is not high.The main reason is that various unpredictable or uncontrollable factors in the process of M&A have a negative impact on the business results of enterprises,which indicates that enterprises need to pay more attention to the financial risks of M&A.In particular,the environmental protection industry itself has a long payback period,high dependence on external financing problems,and the financial risks of M&A activities can not be ignored.Under the above background,this paper chooses the financial risk control of mergers and acquisitions as the theme,starts with basic theories and analyzes the financial risk and control measures of merger and acquisition based on the typical case of merger and acquisition in environmental protection industry--Infore Enviro merger and acquisition of Zoomlion Environment.Firstly,based on information asymmetry theory,internal control theory and merger synergistic effect theory,the types and causes of financial risks in the process of mergers and acquisitions are analyzed.Secondly,from the merger case preparation of mergers and acquisitions,mergers and acquisitions implementation and merger and acquisition integration links three stages and detailed analyze the surplus peak m&a Zoomlion Environment exist in the process of a series of financial risk,mainly including target enterprise valuation risk,financing risk and payment risk,financial integration and goodwill impairment risk,etc,and the surplus peak evaluate environmental risk control measures;Finally,combining the experience of m&a cases,the financial risks should be identified and controlled at all stages of M&A,and the financial risk response mechanism should be improved.Entire article uses the literature analysis,case study method,data analysis and other research methods,and by comparing the Infore Enviro m&a Zoomlion Environment before and after the business performance and development situation,briefly understand the impact of m&a brings to the enterprise,and for the control of mergers and acquisitions bring a series of detailed analysis of the enterprise financial risk taken by the relevant counter measures,It is expected to provide useful reference for other similar enterprises in the industry to prevent,avoid and control financial risks in m&a practice.