The Financial Risk Analysis Of Huayi Brothers Merges Yinhan Ganmes At A Premium

Influenced by national cultural policies,the upgrading of the consumption structure and the development of Internet technology,the cultural industry has ushered in a period of rapid development and accelerated mergers and acquisitions.Due to mergers and acquisitions are exposed to the huge risk,and the risk is full of complexity.It is impossible to recognize and avoid all m&a risk.So it is necessary for enterprise to find out the main risks from the all m&a risk,to prevent them.In addition,in view of the light asset attributes of the cultural industry and the special background of the capital market,the culture industry m&a premium rate is higher than any other industry,huayi brothers premium m&a is a typical m&a case which has its own special background,and is also a miniature of China’s cultural enterprise merger wave.This paper in the foundation of the theory of m&a financial risk,on the basis of process analysis,could divide m&a financial risk into foxur major financial risks,which namely target enterprise pricing to assess risk before m&a,financing risk in the process of merger and acquisition,the repayment risk and financial integration risk after completion of merger and acquisition activity.And the huayi brothers m&a of yinhan games regarded as an example,based on the analysis of the industry background,enterprise general situation of both sides,and the process of merger and premium rate,this paper identifies the four kinds of financial risks of m&a;Then,using analytic hierarchy process and fuzzy comprehensive evaluation method to quantitatively evaluate the financial risk impact of the merger and acquisition;Finally,it puts forward some measures to effectively control the financial risk of merger and acquisition in terms of financial risk identification and evaluation.This paper finds that the acquisition of huayi brothers has not caused a great financial burden on the development of enterprises,but there is still a high risk of debt service and pricing.Especially the premium of up to 15 times,far more than the market average,though related to its cultural enterprise asset light properties,cultural industry is widespread high premium phenomenon,but the target enterprise value premium pay cost is still high in huayi brothers brought the high debt risk and pricing risk.Enterprises in the merger and acquisition activity should be faced up to their solvency,reasonable planning and mergers and acquisitions activity,using reasonable enterprise value evaluation methods,to improve the environmental assessment and merger and acquisition of information asymmetry problem.This paper’s conclusion shows that it is of reference value to correctly identify and evaluate the financial risks of premium m&a and to take measures to reduce risks.