Research On The Financial Performance Of The Reverse Merger Of Qihoo 360 Company

Since the twenty-first century,information technology in China has developed rapidly,and the Internet has gradually played an important role in everyone's lives.When finding the development trend of the Internet,many entrepreneurs invest in the Internet industry,which intensifies the competition of Internet enterprises.Under the current market conditions,listing is undoubtedly the best choice for Internet enterprises to develop and improve their financial performance.However,For internet start-ups,due to their inherent limitations,they always find it difficult to go public directly.Therefore,a reverse merger,which can save time and reduce costs,is favored by many Internet companies.A successful reverse merger can produce synergistic effects,rationally allocate enterprise resources and improve enterprise financial performance.However,some problems,such as inappropriate M&A models and serious financial risks,also exist in reverse mergers,and make it difficult to successfully complete reverse mergers,which poses a serious threat to the development of companies.This paper takes Qihoo 360,which completed the reverse merger for Jiangnan Jiajie,for example.Based on the theory of reverse mergers,it firstly introduces their backgrounds,business operations and financial position.Then it studies the reasons why Qihoo 360 chose the reverse merger,the motivation for Jiangnan Jiajie to sell shell,their transaction process and M&A mode,and potential financial risks.Besides this paper analyzes the short-term and long-term financial performance of both companies through event analysis and financial indicators respectively.Finally,it summarizes the impact of reverse merger on the financial performance of Qihoo 360.At the end of the paper,it puts forward the corresponding conclusions.This paper takes Qihoo 360's reverse merger as the research object and takes the Internet industry as the background to excavate the shining points and financial risks in reverse mergers.Then it deeply analyses the financial performance of companies before and after reverse mergers,and finally summarizes the successful experience to draw the following conclusions.Firstly,enterprises should carefully decide whether to implement reverse merger.They should choose suitable listing methods according to their own future development.Secondly,high-quality shell resources are an important guarantee for the successful revers merger.Thirdly,efficient reverse merger model can not only alleviate the financial pressure,but also reduce the integration risk.Fourthly,only by focusing on the integration after reverse mergers,strengthening financial management ability and improving their own business level,can we improve the financial performance after listing.The research content has good practicability,enriches successful cases of reverse mergers,and has a positive effect on preparation and design of reverse mergers and improvement of financial performance for those who are planning reverse mergers.