| The rapid development of Internet has ch anged not only the way we live, but also our business model, which has a huge im pact to the traditional indus try. In order to obtain better development,get advantages and enhance their own competitiveness, merger and acquisition, which is also called M & A, has become the best way of expansion. Nowadays, Internet industry in China has for med a BAT situation, Baidu, Alibaba and Tencent. Due to the rise of Internet banking, the large data resources, the improvement of the service of mobile terminal and the realizatio n of O2 O strategy, Baidu, Alibaba and Tencent had carried out m erger and acquisi tion from 2013 to 2014. But M&A is not always successful, studies show that 43%-55% of the acquisitions are failures, such as the acquisition between YAHOO and Alibaba ended up in the exiting of YAHOO. In the process of M&A, companies will face risks, such as market risk, policy risk and financial risk, the financial risk is the m ost prominent. If both sides of M&A could understand financial risk correctly, the safety and success of financial risk can be improved. Thus, it has a very important meaning to study the financial risk in M & A.There are different financial risks in of M& A in different industries and time. This paper studys the M&A between Alibaba and HUNSDUN TECHNOLOGIES INC. on the basis of previous studies, reconstructs the process of this M&A, introduces the operating condition and the M&A, reveals the pre merger valuation risk, financing risk and the risk of payment in mergers and acquisitions, integr ation risk after the merger, finally it puts forward the corresponding risk prevention and control measures.The case that Alibaba’s successful acquisition of the HUNSDUN TE CHNOLOGIES INC. elect ronics has a certain meaning to M&A in internet and traditional industry.The main content of this paper is divide d into five sections. The first section introduces the introduction. It introduces the background, purpose and significance of the research in this paper and arranges the reference docum entation, the first section also introduces the basic fram ework and the whol e structure of this research. The second section explains the p aper in theoretical way. This section introduces the concepts, and features of M&A and the financial risk in M & A, it shows the process of M&A and the theory of risk m anagement in the process. T he third section m ainly introduces the background of the M&A case between Alibaba and Hundsun Electrogies, analyzes the motivation of this case. In the f ourth section, the research disc usses and analyses the existing risk of M&A using the relevant theories and finds out the re asons of these risks. The final section is sug gestsions. According to the f inancial risk in the case which has been discussed in the four for mer sections and using related theori es, this section puts forward the best choice for improvement measures. |
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