Research On The Financial Risk Of Mubang Hi-tech’s Cross-industry Merger And Acquisition Of Hao’an Energy

With the acceleration of China’s economic transformation and industrial upgrading,the competitive pressure of many traditional enterprises is increasing,and also experienced the impact of the COVID-19 in the past.Many traditional enterprises’ development has been seriously affected,their business continues to decline,and they are eager to seek new profit growth points.Cross industry mergers and acquisitions are increasingly concerned.Successful cross industry mergers and acquisitions can improve the current business situation,inject vitality into enterprises,and reduce barriers to entry into new fields.New energy,medicine,technology games,and other fields are hot spots for cross industry mergers and acquisitions,and these industries also have the characteristics of high premiums and high risks.Cross-industry mergers and acquisitions are not easy.Not only is it the transfer of control,but also there are uncertainties in every aspect of the merger,including the integration of business operations,financial systems,human resources,and other aspects.Enterprises that are slightly careless may face significant financial risks.Therefore,it is very necessary to identify,evaluate,and analyze financial risks in the process of mergers and acquisitions,and take timely and effective preventive measures for the risky parts.This article uses literature analysis,case analysis,and a combination of qualitative and quantitative methods to conduct a systematic study on the financial risks of Mu Bang High Tech Co.,Ltd.(hereinafter referred to as Mu Bang High Tech)’s cross industry merger and acquisition of Haoan Energy Co.,Ltd.(hereinafter referred to as Haoan Energy),in order to obtain some risk prevention insights,in order to reduce the financial risks that cross industry mergers and acquisitions may bring to the enterprise and reduce economic losses.This article first provides a detailed explanation of the research background,purpose,and significance.Secondly,based on the collection and organization of literature,the main framework for the study of financial risks in mergers and acquisitions is clarified,and the aspects that should be focused on when identifying risks,methods for evaluating financial risks,and approaches for risk prevention and control are mastered.Taking the research object as an example again,this article introduces the overview of both parties,the merger process,and the reasons for the merger and acquisition of Haoan Energy by Mubang High tech,and identifies the financial risks during the merger and acquisition process of Mubang High tech.Then,through financial risk assessment methods,a risk assessment model and system were constructed using Analytic Hierarchy Process and Fuzzy Comprehensive Evaluation.The identified financial risks were quantitatively analyzed and found to be at a higher risk level.Finally,based on the financial risk prevention measures taken by Mubang High Tech and the previous analysis and evaluation results,some financial risk prevention inspirations are drawn,hoping to provide some reference for Mubang High Tech’s subsequent M&A activities and other enterprises that want to engage in cross industry mergers and acquisitions.