Study On The Financial Risk Of Y Medical Company’s Merger And Acquisition Of K Medical Device Company

With the deepening of China’s economic system reform and the establishment of the socialist market economy system,the market activity of enterprises is increasing day by day,and frequent enterprise mergers and acquisitions are spawned.A reasonable and orderly enterprise merger and acquisition is conducive to the effective integration of economic resources and the development of the national economy and society.However,China’s socialist market economy system has not been established long,and there is still a gap between China and western developed countries in terms of the theory and practice of enterprise mergers and acquisitions,especially in terms of financial risk identification,evaluation and prevention in the process of enterprise mergers and acquisitions,which has not yet formed a clear theoretical and practical application system,which is not conducive to the healthy and orderly conduct of mergers and acquisitions between enterprises.This paper first defines the basic concepts related to enterprise M&A from the theoretical level and elaborates the relevant basic theories.Then,taking the enterprise M&A case of Y Medical Company M&A K Medical Device Company as an example,the Delphi method is used to identify the financial risks in the process of this M&A case,and the specific financial risk characteristics are divided into four categories and 12 specific risk factors,including decision-making and pricing,financing,payment and financial integration,By using the comprehensive evaluation method of fuzzy mathematics,the above financial risks were evaluated.The results showed that the overall financial risk,the scores of each standard level and the scheme level of Y Medical Company’s M&A of K Medical Device Company were between 3-4,and the risk level was "high".The reasons for the financial risks in M&A are: asymmetric information between the two parties,improper choice of financing methods,inflexible payment methods and serious resignation of core employees after M&A.In order to effectively deal with the financial risks in M&A,the enlightenment of M&A cases on preventing financial risks in the process of M&A is proposed from improving the accuracy of decision-making and asset value evaluation,widening financing channels,selecting reasonable payment methods and strengthening financial integration,so as to provide strong support for the smooth implementation of M&A cases.The research is expected to guide the managers of Y Medical Company to pay attention to the financial risk control and prevention of M&A,and also provide reference for continuous M&A enterprises like Y Medical Company,so as to improve the financial analysis ability of M&A,enhance the positive effect of M&A activities,and effectively achieve multiple goals such as optimizing resource allocation,enhancing competitiveness,and increasing income.