Case Study On The Financial Risk Control Of Y Group’s Acquisition

With the development of China’s market economy, mergers and acquisitions has become an important means to expand market share and optimize the allocation of resources, reduce costs and develop market. Financial risk goes through the beginning till end of the merger process, and becomes the key factor of M&A’s success or failure. To study the financial Risks of M&A has great significance for business and economic development in China.This paper is divided into five main parts, the first part, which is the first chapter, is the introduction of this article. This part describes the history and the present situation of domestic enterprises mergers and acquisitions. Under this background, this paper studies the M&A financial risk assessment and control, then explains the research significance of this article, namely taking control measures on basis of assessing M&A financial risk, to make the enterprise mergers and acquisitions run smoothly. The second part is the second chapter, which describes the foreign and local study status of company’s financial Risks of M&A. This part mainly starts with the existing literature of financial risk’s meaning during mergers and acquisitions, types, causes, identification and assessment, control measures, to provide a rich and solid theory foundation of this article. Meanwhile, this part concludes the shortage of the existing research, that the domestic and foreign scholars have limited comprehensive analysis and research of the enterprise M&A financial risk. At the same time, due to not have the enterprise’s internal information, and lack of the related statistical data, most scholars stay in qualitative research, quantitative research is not much, these deficiencies provides a starting point for the research of this paper.The third part is the third chapter, which introduces the type, definitions and procedures of M&A, with the coordination theory, provides a theoretical basis for the article. The fourth part is the fourth and fifth chapters, this part analyzes the background of Y group’s M&A towards B company, includes valuation of Y group company, financing, payment, and financial integration after M&A, and the design of the whole acquisition scheme, implementation and financial integration after the merger of the practical examples and illustration, summarizes the financial risks and warning in the process of M&A. The fifth part, which is the sixth chapter, is the conclusion and revelation of this article. Paper adopts the management case study research method of combining theory with practice, aim to provide useful suggestions for our mergers and acquisitions activities.