Research On Financial Risk Assessment And Control Of Overseas Mergers And Acquisitions Of High-tech Enterprise

If a country wants to get ahead of other countries economically,it has to develop science and technology,and carry out efficient production activities that other countries do not have.The development of national science and technology largely depends on the level of enterprise science and technology.The stronger the enterprise science and technology of a country is,the more advanced the science and technology of the country is,the more likely it is to achieve technological breakthroughs and carry out new production activities.However,the promotion of scientific and technological power requires a large amount of capital and manpower to be invested in research and development activities,which are uncertain and likely to fail.In order to avoid such risks,most enterprises will choose to go to countries with more advanced technology and directly acquire the desired technology through mergers and acquisitions.With the "One Belt,One Road" initiative,the government has relaxed the policy,which encourages enterprises to actively conduct overseas mergers and acquisitions in foreign countries.However,there are risks in overseas M&A activities.A failed M&A may bring serious financial crisis to the enterprise.In recent years,there has been constant friction between China and the United States.The United States,together with other western developed countries,has imposed a scientific and technological blockade on China,making the political risks of Chinese enterprises’ overseas mergers and acquisitions soar.For our high-tech companies,the resulting political risk is more obvious.The overseas M&A activities of high-tech enterprises have obvious strategic asset seeking motive and market seeking motive,while western developed countries have advanced technology and strong consumption power,so the location choice of overseas M&A activities of Chinese high-tech enterprises focuses on these countries.The high-tech enterprises in our country depend on the western developed countries,so they won’t easily give up the western developed country market.This paper adopts the way of case study to study the financial risks of overseas mergers and acquisitions of high-tech enterprises,and selects the case as WINGTECH’s acquisition of NWF.The Z-value model and F-value model are used to evaluate the financial risks of the merger and acquisition of WINGTECH.Then,the financial indicators of WINGTECH are analyzed,and it is found that the profitability decreases significantly,the solvency decreases slightly,the cash repayment ability decreases significantly,and the development ability index fluctuates greatly.After identifying the financial risks of M&A,the analysis of the causes of risks shows that in addition to the financial risks brought by pricing,financing,debt repayment and integration,there are also huge political risks.Therefore,some risk control suggestions are put forward for high-tech enterprises according to the stage of overseas M&A activities.This study finds that high-tech enterprises are dependent on western developed countries.In the context of competition between China and the United States,high-tech enterprises are faced with great political risks in addition to other risks.High-tech enterprises should identify the financial risks of overseas mergers and acquisitions in time and take measures to deal with them.At present,there are few articles that discuss high-tech enterprises alone in the research of overseas mergers and acquisitions,but high-tech enterprises play an important supporting role in our economy,so the research is very significant in both theoretical and practical significance.