A Study On Risk Identification And Prevention Of Merger And Acquisition Of Internet Enterprises In Traditional Enterprises

With the gradual improvement of the application of Internet technology,more and more traditional enterprises are aware of the need to adopt the way of mergers and acquisitions to the Internet,to actively change the traditional development concept,reshape the industrial structure,and achieve the integration with the "Internet+",in order to achieve the goal of transformation.Because of the particularity of this kind of mergers and acquisitions,the use of traditional viewpoints can not fully explain the strategic,legal,financial and other issues arising in mergers and acquisitions,and may also result in a loss.Therefore,how to avoid the risks in the process of merger and acquisition and realize the successful transformation of the enterprise has become the primary consideration of traditional enterprises in merger and acquisition of Internet enterprises.Based on the merger and acquisition of Shanghai Manku Advertising Co.,Ltd.by Leo Effective Co.,Ltd.,this paper conducts a specific study with the methods of literature research and case analysis.Firstly,after explaining the background and significance of the paper,the research path and related concepts are analyzed and formulated,and the existing innovations are introduced.Then,it briefly reviews and summarizes the theories and views of scholars at home and abroad on the motivation of M&A and the identification and prevention of M&A risks,and makes a theoretical analysis on the institutional background and current situation of traditional enterprises’ M&A of Internet enterprises.Subsequently,the case is analyzed.Firstly,the general situation and process of M&A are introduced,and the fundamental reasons of cross-border M&A are deeply studied.Finally,aiming at the risks in the whole process of the merger and acquisition and the corresponding preventive measures adopted,with the help of relevant financial and non-financial indicators analysis,it is concluded that the cross-border merger and acquisition is generally relatively successful.Through this study,this paper draws the following conclusions:traditional enterprises through mergers and acquisitions of Internet enterprises to achieve transformation and upgrading,which is indeed an effective path,but it is not applicable to any traditional enterprises at any time.Before mergers and acquisitions,clear strategic objectives should be formulated.Professionals should supervise and manage the mergers and acquisitions.After mergers and acquisitions,attention should be paid to the integration of the process in order to effectively implement the risk prevention plan.It is hoped that the above conclusions can bring corresponding help to the traditional enterprises of merger and acquisition of Internet enterprises.