The Research On Financial Risk Evaluation And Control Of Double Coin Group’s Acquisition Of Xinjiang Kunlun Tire Company

With the development of Chinese market economy,M&A(mergers and acquisitions)has become an important means for Chinese tire enterprises to expand the market share,lower the cost and optimize the resource allocation.However,due to the unavoidable risks during M&A,particularly the financial risks,more and more enterprises get frustrated because of their failures in financial risk control.Therefore,it is significantly important to conduct financial risk assessment and control in the process of M&A.Focusing on this and considering the domestic tire industrial characteristics,this paper conducts case study to analyze the financial risks in enterprise M&A.The research findings will be beneficial for enterprises to prevent and control financial risks,achieve post-M&A synergistic effect and raise the success rate of M&A.This paper adopts the case study method and focuses on Double Coin’s M&A of Xinjiang Kunlun Tyre.Based on domestic and overseas scholars’ research findings and financial-risk-related theories,this paper analyzes and assesses the financial risks in Double Coin’s M&A of Xinjiang Kunlun Tyre;then it hackles the successes and imperfections of Double Coin in financial risk control,puts forward measures for improvement against the imperfections and gets the inspiration for Chinese tire enterprises to strengthen their capacity of M&A financial risk control.This paper is divided into six chapters.The first chapter introduces the background,purpose and significance of this study,defines the research methods,and makes a brief review of the research status of M &A at home and abroad.The second chapter elaborates the theoretical basis of the definition,influencing factors and evaluation methods of the financial risk of M & A.The third chapter summarizes the characteristics of tire industry in our country,and the double coin group and new Kunming company basic situation,mergers and acquisitions,background and process are summarized.The fourth chapter of Double Coin group M& a financial risk for specific evaluation and control analysis,a comprehensive summary of the merger of financial risk control and shortage of success.The fifth chapter for Double Coin group of mergers and acquisitions of financial risk control problems,put forward corresponding improvement measures and other tire companies proposed corresponding suggestions.The fifth chapter summarizes the research conclusions of this paper,and expounds the future research direction.