Study On Financial Risk Of Enterprise' M&A

As China's economic environment becomes more and more active,the M&A activities between enterprises in our country are becoming more and more frequent.M&A itself has many advantages such as rapidly expanding the scale of enterprises,increasing market share and enhancing the strategic position of enterprises,so many managers think that M&A is a shortcut to enhance competitiveness and promote development of enterprises.However,although M&A can bring many benefits to the enterprise,it also has some disadvantages.There are a large number of empirical studies have come to the conclusion that the actual performance of M&A is not satisfactory.In fact,Many enterprises have made the result of merger and acquisition contrary to their original intention because of blind M&A or Poor integration after M&A.To sum up,M&A is a double edged sword.Enterprises need to decide whether they should implement M&A and the choice of target companies according to their own operating conditions,development strategies and merger risks and other factors.The risks in the process of mergers and acquisitions include market risk,financial risk,and policy risk,among which financial risks are particularly prominent.Financial risks exist in the whole process of M&A activities and are the key to determining the success or failure of M&A.This article selects the Shoulv hotel as a research object,starts with the four aspects of pricing assessment risk,financing risk,debt repayment risk,and financial integration risk and analyzes and evaluates the financial risk of merger and acquisition.Finally,it puts forward reasonable suggestions and provides reference for other companies.