The Financial Risk Evaluation And Control Of GDAD Acquisition 'Yarun Culture'

Since the 21st century,with the steady development of Chinese macro economy and the continuous improvement of the capital market,mergers and acquisitions have increasingly become an important way for Chinese enterprises to acquire rapid expansion and enhance their competitiveness.The development of Chinese advertising industry is uneven and the concentration is low.In recent years,frequent mergers and acquisitions have accelerated the survival of the survival of the Chinese advertising companies,making the advertising industry develop intensive.However,every acquisition transaction involves huge amounts of money and faces higher risks.Besides,Chinese advertising companies usually don't pay enough attention to the existence of financial risks,which can't be analyzed,evaluated and controlled by scientific methods,resulting in the low achievement of M&A.Under this background,according to the current situation of mergers and acquisitions,it is of great guiding and practical significance to carry out financial risk assessment and control.In this paper,a logical sequence of questions,analysis and solutions is developed by combining theory with case.Firstly,on the basis of relevant theories and research results at home and abroad,the definition of financial risk during M&A is put forward.It is considered that in the three stages of M&A,valuation risk,financing risk,payment risk and financial integration risk are the main types of financial risk in M&A activities,which are interconnected and mutually restricted.Then,this paper expounds the performance and causes of the four financial risks one by one,identifies the risk in the case of merger and acquisition specifically,uses the analytic hierarchy process and fuzzy comprehensive evaluation to evaluate the financial risks in the case,finds the problems of financial risk control.Finally,according to the problems found,risk control suggestions and case revelations are put forward,mainly including the effective value assessment of the target enterprise,the diversify financing channels and innovative payment methods,setting up professional merger and acquisition team,and the focus on goodwill caused by mergers and acquisitions,hoping to play a reference role to the next merger and acquisition activities of the enterprise.Through the analysis and interpretation of the M&A case,we believe that M&A is a high-risk activity,and the control of financial risk needs to start from the source.The enterprise should start from the strategic height,select the M&A strategy and the target of M&A based on its own development,draw up a systematic and comprehensive plan of merger and acquisition,cooperate with the professional management team,continue to pay attention to the potential risks in the process of merger and acquisition,and take the necessary measures in time.Only in this way can we ensure the smooth progress of M&A and achieve the expected results.