Research On Financial Risk Of M&A

Nowadays,we have entered a world with a high degree of global economy.The continuous development of economic globalization and the competition between different industries and industries have intensified the consumption of resources.Enterprises in order to expand the scale of enterprises,adjust the industrial structure and improve the profits of enterprises Space,the pursuit of long-term development of enterprises,began to embark on the road of mergers and acquisitions.As the development of global economic integration,but also gave birth to the rise of Chinese enterprises,Chinese enterprises in the acquisition of the stage more and more play an important role.In the financial crisis of2008,countries' economies have received varying degrees of influence,and some poorly managed enterprises have begun to sell their shares in large quantities.As the financial crisis on the impact of China's economy is small,many domestic enterprises in order to expand the development of space,improve their own unfavorable conditions,spotted the opportunity,have started the journey of cross-border mergers and acquisitions.Although mergers and acquisitions are quick to overcome their own unfavorable conditions,learn advanced technology and enhance their own strength of the important steps,but can not be ignored is that there are many risks of mergers and acquisitions,especially financial risk,Will lead to the failure of mergers and acquisitionsGeely acquisition of Volvo this "snack big" case is undoubtedly a typical case of cross-border mergers and acquisitions.In this paper,the analysis of many aspects,including the relevant theory,motivation and mergers and acquisitions in the financial risks and other aspects of the financial risk problems throughout the M & A,affecting the success or failure of mergers and acquisitions,so this issue of financial risk will focus on ink analysis.It is hoped that the analysis of this paper will give some useful reference for M & A of Chinese enterprises.This paper examines a large number of literatures and data,analyzes the financial risks in M & A on the basis of respecting the objective facts,finds out its motivations,and gives corresponding measures to solve the corresponding financial risk.The main method of analysis is through Geely before the acquisition of financial data before and after the analysis,through the acquisition of financial data Geely before and after the comparison,and then through profitability,solvency,development capacity to carry out research and analysis,through the same industry data comparison See auspicious acquisition of Volvo before and after the profit and risk in the end howThrough the research and analysis of Geely's acquisition of Volvo,the following conclusions are drawn.First,the financial risk problem is extremely critical to a M & A enterprise,and it is necessary to solve the problem of financial risk in M & A.Second,through the analysis of lucky acquisition Volvo found that although the performance of the acquisition has been improved,but there is still the risk of debt service is too large.Again,the operational risk and the integration risk after M & A are also worthy of attention.Finally,M & A process should pay more attention to financing risks and payment risks,in the latter part of the merger to pay more attention to corporate debt risk,profit risk and integration risk.