Case Study On Financial Risk Of K Company Merger And Acquiring T Company

At present,in the research on financial risk of m&a in China,the research results are too concentrated,and the research objects are mainly concentrated in traditional industries,and the industry perspective of the research is less,and the m&a in information technology service industry is rarely mentioned.The successful cases in this thesis,the selection of K company mergers and acquisitions T company,through the case analysis form on the depth of K company m&a financial risk analysis,analysis of the control of the financial risk of m&a success experience,combined with industry characteristics to comb of m&a financial risk,hope for the same industry other enterprise mergers and acquisitions between provides referential value for reference.Through four parts,this paper introduces the case study of financial risk of company K's merger with company T.The first part first summarizes the domestic and foreign research on the financial risk of mergers and acquisitions and related theories,introduced the background and significance of mergers and acquisitions research.The second part mainly introduces the background of case merger,the reason of merger and the process of merger and acquisition.The third part is the core part of this paper,which briefly introduces the relevant theoretical basis and analyzes the financial risks of mergers and acquisitions.This paper mainly analyzes the financial activities of K company before,during and after the merger,and analyzes whether the measures taken by K company can effectively control the financial risks.By combining theory with case analysis,this paper mainly analyzes what preparation work K company has done before merger and acquisition,the determination of merger and acquisition price,the raising of funds needed for merger and acquisition,the payment method of price and the financial integration after merger and acquisition.The fourth part is to introduce how to control the financial risk of the case,and make enlightenment to the future of similar enterprises mergers and acquisitions.Through the analysis of this case,it can be concluded that the methods for K company to control financial risks are as follows:when K company selects the target enterprise,it mainly considers its own actual situation and the development prospect of the target enterprise;Before merger and acquisition,professional intermediaries are employed to audit and evaluate the assets of the target enterprises to determine the value of the target enterprises.Meanwhile,performance compensation agreements are signed with the target enterprises to prevent pricing risks.Fully consider the advantages and disadvantages of various financing and payment methods,and choose the lowest cost financing and payment methods based on their own financing ability and own capital level;After the completion of the acquisition,the financial system,financial strategy and financial personnel of the target enterprise are integrated to make it conform to the financial strategy of the acquirer.It is hoped that these measures can provide a basis for domestic enterprises in the same industry to prevent financial risks in mergers and acquisitions.