Alibaba Acquired The Financial Risk And Control Of Intime's Business

The spread of globalization makes the Internet contact people's life increasingly.Internet companies also develop relying on the extensive uses of Internet.With the rapid development of Internet companies,mergers and acquisitions in Internet companies are increasingly frequent in recent years.Internet companies raised the mergers and acquisitions upsurge since the year 2013.In order to integrate online and offline and to make preparations of O2 O,many Internet companies such as Alibaba,Tencent and Baidu conducted a large-scale M&A.However,the characteristics of the Internet industry determine the M&A is a very complex economic behavior.There are a large number of financial risks in it.This paper is on the basis of previous studies.It analyses the typical case of M&A between Alibaba and Intime.This paper discusses potential financial risks in the M&A.It also summarizes the corresponding measures to the financial risks in the M&A.Thus,this paper has an important meaning.The main content of this paper is divided into five sections.The first section is the introduction,which includes the background and significance of the topic.Relevant references and framework of the paper are also included.The second section explains the paper in the theoretical way.This section introduces the concepts and types of M&A.It also shows the theories of risk identification and control.The third part is the description of case.Firstly,it analyzes the current situation of the Internet and retailing.Then it introduces the background of the Alibaba and Intime.At last it briefly describes the process of M&A between Alibaba and Intime.The fourth part makes a concrete analysis of existing financial risk of M&A.The fourth section can be divided into four sections: the risk of the strategic planning and the choice of target company;valuation risk;financing risks and payment risk;integration risk.The fifth part is the part of summaries.This section concludes the solutions to the financial risk in the M&A between Alibaba and Intime.