A Research On Financial Risks Of Merger Based On Overall Processes Of Joint Venture Railway Company

With the rapid development of joint venture railways,the joint venture railway companies have experienced a large number,widespread distribution,varying scales,and uneven operating capabilities.Some of the joint venture railway companies have sustained difficulties in their ongoing operations.Therefore,they need to be explored through regional restructuring.A brand-new joint venture railway company operation management model.For this reason,the railway company has conducted a series of useful explorations,and the number of mergers between joint venture railway companies has gradually increased.However,such mergers are still at the initial stage.They have less experience,and the procedures are not standardized,and there are great financial risks.This article will adopt a series of discussions and research to optimize the merger process for such mergers and acquisitions,standardize financial work,reduce financial risks,increase the success rate of mergers and acquisitions,and promote the reform of joint venture railway companies.This paper mainly combines process optimization and financial risk,starting from the perspective of the whole process,first combing the general procedures and financial work absorbed by the joint venture railway company in accordance with laws and regulations,and then analyzing the source of risks according to the financial risks in the actual case of the case.It is proposed that joint venture railway companies absorb the precautions and suggestions for financial risks in the merger process.This paper divides the merger and acquisition process of the joint venture railway company into four phases.There are different financial risks in the different phases of the merger:First,it is the preparation phase before the merger.The main work in this phase is to complete the merger of the parties.Adjust and understand the situation of stakeholders,estimate potential risks,reduce the risk of information asymmetry;Second,it is the design phase of the merger plan,this stage has very important target company value assessment work and financing and payment method design work It is necessary to make plans according to the specific circumstances to reduce the financial risks in terms of value assessment,financing,etc.Furthermore,it is the implementation phase of the merger plan.This phase mainly requires early familiarity with laws and regulations concerning company cancellation and preparation of relevant materials.Make full use of special tax treatment policies to do a good job of tax planning;Finally,the post-merger integration phase,the integration phase to ensure substantial integration,and do a good job of post-merger evaluation.This paper sorts out the general procedures and processes of the joint venture railway company’s absorption and consolidation,analyzes the financial risks involved in the merger,and proposes preventive measures for financial risks,which can help joint venture railway companies to reduce the financial risk of merger and merger,and increase the probability of merger success.It has certain guiding significance for the joint venture railway company and the railway bureau to continue the merger and reorganization work.