| With Case Study Method and Literature Study Method,this article thoroughly studied the financial risk of S Company merger and acquisition T Company.The reason to choose S Company M&A(merger and acquisition)T Company as the exampled case is that this case is the largest M&A case in the history of New OTC Market Enterprises as one hand.On the other hand,The mixed mergers and acquisitions approach which S company took has helped T Company expand its business scope,reduced operational risk and enhanced the resilience of enterprises.Through the use of quantitative analysis and qualitative analysis method,this paper found three aspects of financial risk during the whole process of S Company M&A T Company.Firstly,value evaluation risk,mainly caused by unreasonable income approach evaluation,uncertainty of valuation adjustment mechanism and abnormal growth of evaluation;Secondly,financing payment risk,mainly manifested as single financing method of S Company,substantial risk of shell and the amount of cash is overpaid;Finally,financial integration risk,the main reason for its formation is the unfinished legal issues of T Company,and the combined complexity of mixed mergers and acquisitions.The article summarized the successful M&A experience in the examples case,such as the choice of professional assessment agencies,the use of mixed payment methods.And puts forward some suggestions for the areas need to be promoted,especially on the risk of M&A pricing and the prevention of the risk of financial integration.S company should take due diligence,optimize the assessment methods,and strive to expand the financing methods,the integration of financial management system and other measures to prevent financial risks in mergers and acquisitions.It is expected that this paper will provide guidance for enterprises to effectively prevent financial risks in future M&A transactions and make some contribution to improve the success rate of enterprise 'merger and acquisition. |
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