The Research On Financial Risks Of Internet Companies Mergers And Acquisitions

Risk is the possible loss caused by uncertain factors to the expected results.M & A is an investment expansion activities for enterprise development and expansion will inevitably accompanied by risks,but the financial risk is an important part of the merger risk,any unpredictable factors led to the merger and acquisition of enterprises the actual income and the expected return is not the same,increase the possibility of final acquisition of two losses,will affect the success of mergers and acquisitions.If both sides of the Internet merger and acquisition can correctly identify the financial risk of M & A,take the M &A financial risk prevention and control measures to avoid the risks,then the security and success of M & A will be greatly improved.Therefore,this paper is of great significance to the study of the Internet industry mergers and acquisitions financial risk.This paper selects Tencent mergers and acquisitions to Yixun,combined with the analysis of literature review,theoretical analysis and case of Internet enterprise merger causes,financial risk and financial risk management are discussed,for M & A case before the late in the existing valuation risk,financing risk and financial risk payment integration to make a detailed analysis,finally puts forward the corresponding the prevention and control measures,bring some suggestions in order to face other Internet merger financial risk.One of the three giants of the Internet industry Tencent Inc,with its own development features a single distinct fast and easy company,both sides are in a leading position,it is worth exploring the Internet mergers and acquisitions of financial risks.This case has both particularity and universality.Through the analysis of the case,we can bring some suggestions for the financial risk prevention and control of other Internet Co mergers and acquisitions.This paper begins with the background and significance of the study,research content and framework,research methods and innovations.The main part of the first theoretical analysis of Internet financial risk of mergers and acquisitions,pointed out that the Internet industry is a typical asset light industry,light assets in the enterprise is larger,and the vast majority of those assets is by way of accounting measurement in financial statements,easily lead to information asymmetry caused by mergers and acquisitions valuation risk;financing structure and the Internet industry has the unique cash flow structure,high investment,high risk,in the early growth stage and the enterprises invested heavily in R & D costs and marketing costs,obtain cash income rarely,cash flow distribution of the high volatility of the unique financing payment caused by mergers and acquisitions in the financial crisis intensified;Internet mergers and acquisitions involving diversified business areas,industrial integration,Internet companies are not confined to its own business development,constantly in the relevant business.The domain for growth,achieve ahead of the layout of the use of their own advantages to occupy the market share and competitiveness,and interdisciplinary,cross-border mergers and acquisitions can make the Internet determines the success of mergers and acquisitions in the financial integration.Later,the paper divides the types of financial risks of Internet enterprise merger and acquisition,and puts forward the corresponding risk management methods.Secondly,the Internet enterprises Tencent acquisition of Yi Xun case specific introduction,starting from the basic situation of Tencent is fast and easy,the acquiring Tencent Inc introduced the basic development situation and management situation of the company,summed up the business and investment Tencent Inc,the company acquired Fang Yixun introduces the development history and status of the industry,and analysis the merger of the two,and the reduction of the merger and acquisition process.On the basis of the introduction of the case,this paper makes analysis and evaluation on the financial risk of M & A of Tencent,from the three stages of the pre merger valuation risk,financing payment risk and financial integration risk.Finally,combined with the above theory analysis and case analysis,it is found that the proposed financial risk prevention and Control Countermeasures of mergers and acquisitions of Internet companies: first,before the acquisition,in-depth analysis of the current market conditions,industry conditions,and for their own enterprises in-depth evaluation,scientific selection of target enterprises;set up special acquisition management team,hire accounting firms experienced to assist in the investigation common to corporate mergers and acquisitions,on-the-spot investigation,understand the daily work of the financial enterprises mergers and acquisitions,and check the authenticity of accounting information of enterprise mergers and acquisitions,and should not neglect the development of science and technology,user traffic is very important for the Internet industry sheet assets.Second,mergers and acquisitions,mergers and acquisitions of Internet companies to their cash flow and debt level in-depth analysis,in order to determine the most suitable for their own corporate financing.Equity financing is prone to reverse merger,enterprises can take the cash financing to complete the merger and acquisition,reduce the cost of purchasing,reduce the purchase risk;stock payment for the acquisition and merger joint business after the merger of enterprises,by cash acquisition payment options can not only reduce the cash to bring a large number of short-term corporate mergers and acquisitions the pressure of capital requirement,but also can be merged into the enterprise business results in the source of payment.Third,after the merger,both sides should be integrated financial management strategy,restructuring the financial organization,unified financial system,to achieve the optimal allocation of resources,to help enterprises quickly into normal operation,to maximize the interests of enterprises;the introduction of financial information sharing,improve corporate mergers and acquisitions and mergers and acquisitions business management efficiency,strengthen management and target control,enhance the enterprise merger and acquisition on the overall control of the economic activities of the enterprise mergers and acquisitions.