| In recent years,Chinese companies have increased their investments abroad,and more and more Chinese companies are actively getting integrated into global markets in order to enhance their ability to operate internationally.When it comes to modern enterprise management,financial risk is an important part of mergers & inquisitions(M&A),existing throughout the M&A process,and having a significant impact on a company's financial status and risk management.In China,most studies are about M&A at the macro-level,lacking specific analysis.Therefore,this paper will analyze and evaluate the possible financial risks in the M&A process.First of all,this paper will go through various M&A scenarios of Chinese and overseas companies and analyze the issues they have in the process,which will lead to the theme of this study.Secondly,based on the studies of others,this paper will build a model about the financial risks involved in M&A for companies through an analytic hierarchy process(AHP).The model has a total of four primary indicators including pricing risk,financing risk,payment risk and financial risk,and 13 secondary indicators.Together,they form a relatively complete system of indicators.The final results are obtained through a questionnaire survey conducted with various institutions to get firsthand data and calculate the weight vector using the hierarchical method and the fuzzy evaluation model.As a case study,this paper has examined the financial risks involved in Wanda Cinema's acquisition of Australia's Hoyts Group.An evaluation of the M&A cases of other Chinese companies shows that the financial risks in this case are not very high.The risks are mainly from the financing process.Therefore,it is necessary to pay special attention to managing the financing process.After this,the paper makes a summary,and offers advice on preventing various financial risks in M&A,hoping to provide theoretical support and help for the healthy development of Chinese companies on the international arena. |
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