The Research On Identification And Control Of Financial Risk About Blue Flame M&A Of HualuBaina Film&TV Inc.

With the rapid development of the economy,coupled with the historical background of continuous improvement of the quality of life,people's cultural consumption level in China shows a trend of steady improvement and the proportion of cultural consumption in the daily consumption increases day by day.For cultural media companies,the integration of new technologies with new markets has led to the emergence of new business models.In order to shape their competitive advantages and further enhance their market share,cultural media companies have chosen the important way M&A to achieve the expansion and development,but in this process,Identification and control of financial risks is crucial for the success of merger and acquisition.Only a few numbers of cultural media companies have achieved successful M&A.In which,the most typical one is the acquisition by Hualubaina of Blue Flame on market.Firstly,this paper reviews the researches on financial risks of merger and acquisition by scholars at home and abroad;Then it defined M&A and financial risk of M&A based on the theoretical level,and then,through the research method combination with the actual case,starts with the detailed process of acquisition by Hualubaina of Blue Flame.Moreover,based on the characteristics of cultural media enterprises,it segments financial risk identification and control in this process from the perspective of time sequence,which are specifically cut into three stages,i.e.,the value evaluation stage before M&A,financing and payment stage in the course of M&A and integration stage after M&A.It puts forward corresponding control measures for the financial risks of merger and acquisition in the case.In the last part of the paper summarized the successful experience of merger and acquisition of the enterprise and provided relevant suggestions.Through specific case analysis in this paper can expected that it can play an important reference role that is conducive to the Chinese cultural media enterprises may take feasible control methods to enhance the success rate of merger and acquisition in the face of financial risks under different stages of merger and acquisition.