A Case Study On Financial Risk Of GRAM Purchase Dongjiang Environmental

In today's economic environment,the enterprise competition is more and more intense,mergers and acquisitions is the fastest and most direct means to achieve the growth of enterprises.However,some enterprises ignore the risk of M & A,a little mistake may bring a fatal blow to the enterprise.According to the modern theory of financial risk,the financial risk of M & A can be divided into pricing risk,financing risk,payment risk and financial integration risk.For state-owned enterprises,due to the impact of government intervention,the merger decision reflects the regional economic development needs,but ignores the economic benefits of the enterprises after the merger,resulting in financial risks.This paper first introduces the background and research meaning of financial risk analysis of M&A,using literature research method to analyze the relevant literature,introduces the latest research on financial risk of M & A at home and abroad;secondly using GRAM purchase Dongjiang Environmental as the research object,introduce the background,motivation,enterprise selection,purchase process and financial risk control practices of the acquisition in detail,then from the perspective of pricing risk,financing risk and financial integration risk,find out the problems existing in the financial risk control of the acquisition,and finally put forward suggestions for the subsequent financial risk management as follows:(1)GRAM should choose the appropriate timing and method to increase holding,so that to reduce the cost as far as possible;(2)GRAM should reduce the debt burden through the diversification of financing,so that to avoid excessive liquidity pressure after the acquisition;(3)seize business collaboration opportunities of GRAM and Dongjiang environmental,expand the business scope of Dongjiang environmental protection,improve the income growth rate and promote the market value and stock price;(4)unify the accounting information system as soon as possible,help GRAM monitor Dongjiang environmental in the real-time(5)sort out and dispose of the historical issues of Dongjiang environmental,improve the efficiency of the use of assets;(6)promote business cooperation of GRAM and Dongjiang environmental,reduce financing costs,help its business layout get further expansion;...