Research On Financial Risk Management Of S Retail Enterprise Merging J Company

Now M&A has developed into the main way of enterprise transformation and upgrading and capital expansion,but there are many financial risks hidden in M & A activities,which require M & A enterprises to timely identify M & A financial risks and take positive countermeasures to avoid risks.S retail enterprise has developed from a traditional home appliance retail enterprise to a comprehensive Internet retail enterprise.The company has completed its business layout through mergers and acquisitions for many times.S retail enterprise and J company belong to the retail industry,both of which are leading enterprises in different sub sectors,and J company is a French enterprise.Therefore,this M & A transaction has the characteristics of horizontal M& A,strong alliance and cross-border M & A,making the M & A process more complex and the M & A integration more difficult.In this context,this paper takes the s retail enterprise’s merger and acquisition of J company as the research case,and focuses on the financial risk management in this merger and acquisition case,so as to provide reference and reference for other merger and acquisition enterprises to prevent financial risks.Using the methods of literature,case analysis,qualitative and quantitative analysis,this paper sorts out the research results of domestic and foreign scholars on the financial risk of M & A,and summarizes the related concepts and theoretical basis of the financial risk of M & A.Then this paper focuses on the case of s retail enterprise merging J company,introduces the basic situation of both sides of the merger,analyzes the motivation and process of this complex merger and acquisition transaction,and identifies and evaluates the financial risk of s retail enterprise merging J company.There are valuation risk,financing risk,payment risk and integration risk in the merger and acquisition of J company by s retail enterprise.Through the evaluation of the financial risk of the merger and acquisition of the company,the result belongs to the medium risk level.S retail enterprises have taken a series of measures to prevent the financial risks of M & A.the company has selected reasonable valuation methods and models to reduce the potential valuation risks,reduced the potential financial risks in the process of M &A by expanding financing channels and optimizing payment methods,and avoided the possible financial risks after M & A by strengthening M & A integration.Finally,it summarizes the Enlightenment of s retail enterprise’s merger and acquisition of J company’s financial risk management,provides reference for other retail enterprises to avoid financial risks,improves the merger and acquisition success rate of retail enterprises,promotes the transformation and upgrading of retail enterprises,and establishes a new retail model.