Research On The Identification And Prevention Of Financial Risks In H Company’s Premium Mergers And Acquisitions

In recent years,the pharmaceutical mergers and acquisitions market has gradually heated up,with the amount of M&A transactions increasing year by year.Premium acquisitions have become the new normal in the market.However,the failure rate of premium acquisitions is significantly higher than that of ordinary M&A transactions,because premiums can cause more serious financial risks and lead companies into financial crises.This indicates that ignoring or underestimating the financial risks of premium acquisitions is the key issue in current premium acquisition transactions.Existing research on premium acquisitions mainly focuses on the motives and influencing factors of premium acquisitions,ignoring the degree of influence of financial risks in such transaction processes.Therefore,this article combines specific cases to focus on the financial risks faced by premium acquisitions at each stage.This article focuses on company H as the research subject,identifying and evaluating the financial risks in its premium mergers and acquisitions,and proposing corresponding suggestions for financial risk prevention.Firstly,this article analyzes the research background,reads domestic and foreign literature,learns relevant knowledge and theories of premium mergers and acquisitions,and proposes the research ideas and framework of this article.Secondly,a comprehensive analysis and interpretation of the relevant announcements,annual reports,and financial conditions of the selected cases are conducted,and the advantages and limitations of various identification methods are summarized and analyzed.The financial risks generated by H company’s premium merger and acquisition of A company are identified by combining the financial statement analysis method and the index analysis method.Next,based on the theoretical learning in the previous section and the industry characteristics,relevant indicators are selected,and a financial risk evaluation model is established using principal component analysis and logistic regression to evaluate the impact of various financial risks on H company’s mergers and acquisitions in the current year.The results show that the financial risks generated by the premium merger and acquisition transaction are relatively small,and the merger and acquisition is successful.The financial risk evaluation results of each stage are as follows:the financial risks in the integration stage after the merger have significantly increased,mainly concentrated in the profit development aspect,and H company needs to pay more attention to the integration issues after the merger.The financing and payment risks in the implementation stage rank second,and research shows that such risks can be effectively avoided by adopting more appropriate control measures.The impact of debt repayment risk,development risk,and valuation risk in the integration stage is relatively small but still needs to be timely and effectively detected.Finally,effective preventive measures are proposed for the preparation stage,implementation stage,and integration stage of mergers and acquisitions.Through this article,provide a comprehensive study on the identification,evaluation,and prevention of financial risks associated with H Company’s premium acquisition of A Company,which can provide practical significance for mergers and acquisitions in the pharmaceutical industry and the entire manufacturing industry,thus ensuring the rationality of acquisition prices and effectively preventing financial risks in premium acquisitions.