Study On The Prevention And Control Of Financial Risks In Enterprise Mergers And Acquisitions

Nowadays,with the rapid development of the world,communication,transportation and other infrastructure have become very convenient,people have become more closely linked,business activities involve more and more places,and social and economic activities become increasingly complex.Many enterprises will choose mergers and acquisitions in order to improve their own operating conditions,expand their business scope,optimize the allocation of production factors,and strengthen their competitiveness in the economic field or other purposes.In the process of mergers and acquisitions,there will be policy risks at the regulatory level and market risks,but the most far-reaching impact is financial risks.If we can solve the financial risks in M&A,the success rate of M&A will be much higher.This paper chooses the merger and acquisition case of Inner Mongolia Yuanxing Energy Co.,Ltd.and Henan Zhongyuan Chemical Co.,Ltd.as a case study.By collecting case data,the paper analyses the motives of merger and acquisition of both sides in the case.Combining with the preparation before merger and acquisition,the financial risks involved in the process of merger and acquisition and after the completion of merger and acquisition,it adopts literature analysis,case analysis and quantitative analysis Combining with qualitative analysis,this paper analyses and discusses the results under the influence of financial risks,and gives their respective prevention and control measures for different financial risks,hoping to provide some theoretical methods and suggestions for future mergers and acquisitions of other enterprises.This paper is divided into six parts.The first part is an introduction,describing the background,significance,ideas and research methods of the article.The second part is the theoretical research,listing the domestic and foreign research literature review and review,and outlining the relevant theory.The third part is the introduction of the case,which summarizes the background and motivation of the mergers and acquisitions.The fourth part is to analyze the financial risk in the case.The fifth part is a case study of financial risk prevention and control.The sixth part is the conclusion and future prospects.Through research and analysis,the following conclusions are drawn: 1.When selecting the target of M&A,focus on the main business as far as possible,and take improving the core competitiveness of the company as the basic starting point;2.When guarding against specific M&A financial risks,different schemes should be given based on different stages.For example,in the payment stage,the risk is reflected in the way of equity exchange and cash payment according to different payment methods.The financial risk in the process of M&A payment can be prevented by combining the environment of M&A,choosing payment methods,implementing hierarchical payment and signing performance compensation agreement,arranging immediate or deferred payment,etc.