Research On Financial Risk Identification And Control Of Thomson Beijian’s Acquisition Of LSG

Mergers and acquisitions are an essential means for enterprises to rapidly expand their business scale and explore strategic transformation.However,there are huge risks hidden behind its super benefits,and with large capital investments,enterprises will inevitably face financial risks.Financial risk is ubiquitous,not only affecting the merger and acquisition process,but also affecting the final outcome.Therefore,it is crucial to correctly identify and effectively control this important issue.This article is based on the research perspective of financial risks in corporate mergers and acquisitions,and explores and analyzes the typical case of Thomson Beijian’s acquisition of LSG.Firstly,by reviewing and organizing a large number of domestic and foreign literature and materials,and using research methods such as literature research,case analysis,and factor analysis,in-depth research was conducted on the financial risk control of enterprise mergers and acquisitions;Secondly,based on theories related to corporate mergers and financial risks,this paper introduces cases of merger and acquisition transactions between both parties,analyzes the financial risks identified by the acquiring party during the merger and acquisition process,and uses factor analysis to comprehensively evaluate its financial risk control;Finally,in order to avoid financial risks in enterprise merger and acquisition activities and minimize risks,this article proposes improvement measures from three stages: before,during,and after the merger and acquisition,based on the measures taken by the acquiring party to control financial risks.Firstly,before determining the merger and acquisition target,the enterprise should scientifically formulate the merger and acquisition strategy and fully prepare for early due diligence;Secondly,in order to ensure the smooth progress of enterprise mergers and acquisitions,comprehensive consideration should be given to the repayment sources,financing channels,and payment methods of the enterprise during the merger and acquisition process;Thirdly,after the transaction is completed,the enterprise should also strengthen the operational supervision mechanism of the target company,establish a financial risk prevention and control early warning system,and maintain close contact with the target company.Therefore,based on the existing theoretical research of predecessors,this article conducts an in-depth analysis of the specific case of Thomson Beijian’s merger and proposes relevant improvement measures.On the one hand,it helps Thomson Beijian avoid financial risks in mergers and acquisitions and improve the success rate of enterprise mergers and acquisitions;On the other hand,it also provides reference and reference for mergers and acquisitions of other enterprises in the food and health industry,improving the financial risk control level of industry mergers and acquisitions.