Research On Financial Risk Control Of New Three Board Companies In Mergers And Acquisitions Of Listed Companies

Mergers and acquisitions between enterprises have gone through more than 30 years in our country.In recent years,the pace of development of mergers and acquisitions among enterprises is more and more rapid.At the same time,the number of new third-board enterprises in China's market has increased rapidly.By December 31.2017,the number of enterprises listed on the new third-board has exceeded 11,600,and become an important member of China's capital market.Because of its perfect regulatory mechanism,some enterprises have excellent qualifications,which also attract listed companies to become the target of M&A.so as to achieve acceleration,The effects of industrial synergy.diversification and technology upgrading.In 2017,the number of mergers and acquisitions by listed companies reached 112 cases,an increase of 30%over the previous year.However,it is noteworthy that the completion of M&A,approved by the M&A and Restructuring Committee and the Securities Regulatory Commission are the criteria for evaluating the completion of M&A.Excluding the proportion of non-shareholders after transfer,the number of successful M&A cases completed by Listed Companies in 2017 is only 83,which is 19%higher than the 70 successful M&A cases completed in 2016.From the statistical analysis of the above data,we can find that although the enthusiasm of Listed Companies in M&A of the new third board is high,the failure of M&A also occurs from time to time.In 2017.there were 29 failures in the merger and acquisition of new third board enterprises by listed companies.Cross-market M&A is a brand-new and complex process,especially in recent years,there have been cases of listed companies merging new third-board enterprises.Although there are many financial risk analysis methods for cross-border mergers and acquisitions,cross-industry mergers and acquisitions.industry mergers and acquisitions.However,there are few financial risk analysis of cross-market M&A,which is similar to listed companies'M&A of new third board enterprises,and few cases are combined with the actual situation.This paper chooses actual cases of merger and acquisition of WH Group to analyze the financial risk of merger and acquisition of WH Group from the valuation risk of cross-market of target enterprises,strategic risk of cross-market merger and acquisition,and integration risk caused by different nature of enterprises after merger and acquisition,and lists the preventive measures of risk implementation of WH Group.Finally,through the comparative analysis of the financial situation before and after the merger and acquisition of WH Group,summarizes the experience and lessons of WH Group in preventing and controlling the financial risk of the new third board enterprises in the face of merger and acquisition.Then it puts forward the overall prevention suggestions for the financial risk of the listed companies'M&A of the new third board enterprises,which has a guiding role and reference significance for the listed companies' cross-market M&A to prevent financial risk.