Analysis Of Risk Prevention And Control Of Alibaba Group's Merger And Acquisition Of Heyi Group

In recent years,with the rapid economic development,enterprises want to rely solely on their own forces to achieve the goal of rapid expansion has become more difficult to achieve.Therefore,in the context of economic globalization,a large number of enterprises gradually explore the way to take mergers and acquisitions can enhance their competitiveness,enhance their competitive advantages,and thus occupy a position in the industry.With the rapid development of the Internet industry,the research in this paper has certain reference value for those Internet enterprises which hope to solve the competition problem through M&A,reduce the cost and increase the market share and so on.It is helpful for them to make precise M & A strategy in their own business process,and it is of practical significance to the prevention and control of risk in M&A process.The case selected in this paper is Alibaba Group M&A Unity Group.First of all,this paper makes a detailed and comprehensive interpretation of the background and significance of M & A;Secondly,this paper expounds the related concepts,theories and analysis methods of Internet enterprise merger and acquisition,then expounds the current situation of Internet enterprise merger and acquisition,and then introduces and analyzes the case to study the motivation of the merger and acquisition.Finally,the risk before and after M&A is analyzed by subsection recognition method,and the effective prevention and control strategy is given.The main purpose of this paper is to reduce the efficiency and avoid the risks faced by enterprises in M&A activities,as well as the possible losses,so as to achieve the effect of 1+1 > 2.The conclusion can be drawn as follows:(1)the merger and acquisition of Alibaba Group has brought it positive financial effects,improved its market share and improved its industrial layout;(2)it is found that the risk of M&A is mainly strategic risk and information asymmetry risk,financial risk and synergy risk,and human resource integration risk,business integration risk and cultural integration risk.(3)the risk prevention and control strategy of Alibaba M&A Group should be given in detail.A reasonable and accurate strategic cooperation plan should be formulated in the pre-M&A period and a detailed investigation should be carried out.In the mid-term of M&A,we need to know the financial situation of both sides in detail,choose the right financing mode and appropriate payment mode;In the late stage of M&A,we should treat the cultural differences between the two sides correctly,treat the overlap of business with an inclusive perspective,and choose a suitable and reasonable integration mode,so as to provide a useful reference for the merger and acquisition of Internet enterprises.