Research On Financial Risk Prevention Of Internet Enterprise Merger And Acquisition

Nowadays,with the development of science and technology,the Internet has been used in every aspect of our life.The arrival of "Internet+" economy in the new era has impacted the development of traditional entity enterprises,which have opened Internet business one after another and implemented the business model combining online and offline.In day by day in the market competition in the network environment,large Internet companies began to adopt merger and acquisition activity to obtain the user data of the enterprise mergers and acquisitions to improve their own comprehensive strength,improve the market share,but compared with the traditional enterprise Internet industry has the technology change of high speed and light assets proportion,low entry barriers,etc.These industry characteristics also lead to the Internet enterprises in the process of merger and acquisition of special M&A risk.In recent years,the number and amount of mergers and acquisitions of Internet enterprises have increased significantly,among which there are many cases of merger and acquisition failure.The vast majority of these failure cases are due to the failure of enterprises to identify and prevent the financial risks in the process of mergers and acquisitions of Internet enterprises.This paper draws on the research results of scholars at home and abroad to conduct an in-depth analysis of the current background of China’s Internet mergers and acquisitions.On this basis,taking Meituan’s merger and acquisition of Mobike as the research object,this paper expounds the motivation,process and results of the merger and acquisition,and focuses on analyzing the financial risk prevention system of the merger and acquisition process established under the strategic goal of Meituan.Based on the balanced scorecard,the financial risk prevention effect of Meituan’s acquisition of Mobike was comprehensively evaluated,and the conclusion was drawn as follows:although Meituan company used a large amount of funds to acquire Mobike,resulting in the decline of various financial indicators of the company in that year,Meituan took a number of financial risk prevention measures in combination with its own strategic goals.Conducting research before merger and acquisition,the acquisition of enterprises in the recession period,reduce the counteroffer power.In the process of merger and acquisition,mixed payment means are adopted to avoid the impact of large amount of cash disbursement on the daily operation of the enterprise.At the same time,the closed-loop service of life products has been strengthened,which has won a lot of capital favor.After the merger,a series of measures,such as integrating APPs and advantageous resources of both sides and realizing the integration of corporate culture,have reduced the adverse impact of the merger on the company to a certain extent.The company’s market share and trading volume have been further improved.Its "grand strategy" development goals have been improved.However,Meituan did not take more scientific and reasonable measures in the process of financial risk prevention by taking advantage of its technological advantages and industry characteristics as an Internet enterprise.Therefore,the strategic objectives formulated by Internet enterprises before merger and acquisition must meet the needs of their long-term sustainable development.Before and after mergers and acquisitions,Internet enterprises can comprehensively and accurately evaluate the value of their enterprises by combining new technologies such as big data and cloud computing,and choose payment methods that are compatible with their development strategies to safeguard the interests of both parties.At the same time,we should also establish a certain M&A risk prevention system,improve the mechanism of sudden crisis events,and ensure the smooth and effective operation of enterprises,which has a certain reference significance for the future M&A risk prevention of Internet enterprises.