Research On Financial Risk Control Of Continuous Merger And Acquisition Of Guangdong VTR Biotechnology Co.,Ltd.

Along with the reform and opening up and the rapid development of market economy,more and more enterprises adopt the way of merger and acquisition to expand the scale of enterprises.Especially in the biomedical industry,the frequency of mergers and acquisitions has increased significantly in recent years,and many biomedical companies have begun to carry out continuous mergers and acquisitions.Although continuous merger and acquisition activities can expand the scale of the enterprise and enhance the competitiveness of the enterprise,it will also bring financial risks.In the actual process of merger and acquisition,many enterprises failed to effectively control financial risks,resulting in the final merger and acquisition activities did not achieve the expected results.What is more,the failure of merger and acquisition has affected the daily production and operation of enterprises and brought huge losses to enterprises.Therefore,this paper selects Guangdong Vtr Bio-Tech Co.,Ltd’s continuous merger and acquisition activities as a case study,identifies and evaluates its financial risks in the process of continuous merger and acquisition,and puts forward targeted measures to control financial risks.Firstly,this paper summarizes the relevant literature at home and abroad,mainly including the motivation,risk causes and risk control measures of continuous M&A.Secondly,the relevant concepts and theories of continuous merger and acquisition are elaborated.Then,by describing the status quo and characteristics of the merger and acquisition in the biomedical industry,the continuous merger and acquisition activities of Guangdong Vtr Bio-Tech Co.,Ltd are taken as a case study to identify the financial risks at each stage of the continuous merger and acquisition activities,and evaluate the financial risks of the enterprise with Z-score and F-score.The final conclusion:Guangdong Vtr Bio-Tech Co.,Ltd in the process of continuous merger and acquisition,the financial situation is good,the overall level of financial risk is low.Although there is no risk of bankruptcy,there are unstable factors,and there are certain risks in the pricing stage,financing stage and integration stage.Finally,it analyzes the causes of financial risks in continuous M&A of Guangdong Vtr Bio-Tech Co.,Ltd,and puts forward measures to control financial risks from the perspectives of valuation,financing,payment and integration,hoping to provide reference for M&A activities in the biomedical industry.