Analysis And Analysis Of The Financial Risk Of "Snake Swallowed Elephant" Type Transnational Enterprise Merger And Acquisition Response

In recent years,the pace of China’s economic transformation has accelerated,and the development policy of "going out" and the "Belt and Road" initiative plan have driven the development of overseas mergers and acquisitions of domestic enterprises.Some Chinese enterprises that have completed their original accumulation and have capital advantages have devoted themselves to overseas mergers and acquisitions in order to acquire advanced technology,brand influence and overseas market of foreign high-end manufacturing enterprises,so as to realize transformation and upgrading.However,M&A itself is an extremely complicated transaction,involving major issues such as capital structure,investment decision-making,financing decision-making,etc.,and there are many risk factors.Poor prevention is likely to lead to investment losses or failures.Research into how to more effectively identify,assess,avert,and regulate financial risks is an extremely valuable subject for transnational mergers and acquisitions of businesses.Based on literature analysis,case analysis,qualitative and quantitative analysis and other methods,this paper selects the case of Wentai Technology’s overseas merger and acquisition of Anshi Group,analyzes the financial risks of overseas merger and acquisition,and tries to give countermeasures and suggestions for the prevention and control of overseas merger and acquisition risks.Comprehending the background and importance of foreign mergers and acquisitions,I select pertinent research outcomes both domestically and internationally,analyze and comment on them,and present the contents and research techniques of this document;additionally,it encapsulates and elucidates the pertinent ideas of overseas mergers and acquisitions and financial risks,as well as the associated theories of overseas mergers and acquisitions and financial risk prevention and control.The background,motivation,and process of Wentai Technology’s merger and acquisition are analyzed in conjunction with the fundamental state of Wentai Technology and Anshi Group.Moreover,this eliminates the financial risks associated with Wentai Technology’s overseas merger and acquisition of Anshi Group,such as pre-merger price risk,funding risk,payment risk during the merger and acquisition,and integration risk post-merger.Through the analysis of the risks existing in the company before,during and after,the effective measures to deal with the financial risks of the company are formulated,the effect of Wentai Technology in controlling the financial risks is analyzed.The paper’s research conclusion,which was obtained after analyzing technology in controlling financial risks,is that Wentai Technology’s merger and integration is a successful case,thus broadening the market and increasing their competitive advantage.This paper proposes ways to avert financial hazards at every juncture,to regulate and manage the financial hazards encountered by corporate mergers and acquisitions from the origin,and to furnish beneficial experience for the consistent and lasting growth of enterprises in China as a benchmark.