Research On Risk Assessment Of The Traditional Machinery Manufacturing Industry Cross-Border Mergers And Acquisitions Of Internet Enterprises

As the national pillar industry,the machinery manufacturing industry has great impact on national economy.In recent years,the profit margin of the traditional machinery manufacturing industry declined,and new earnings mode needs to be found.With the development of the Internet industry and the rise of network marketing,more and more traditional machinery manufacturing enterprises who need reforming choose to cross-border merger Internet enterprises in order to expand the industrial layout and find new earnings mode.Based on the above,researching on the risks of the traditional machinery manufacturing industry crossborder mergers and acquisitions Internet enterprises has practical significance.This paper first reviews the literature and theories related to merger and acquisition.Then the general situation and competitive situation of machinery manufacturing industry are introduced and analyzed.Then the paper identifies the risks of traditional machinery manufacturing industry cross-border mergers and acquisitions of Internet enterprises.On the basis of the general risk of mergers and acquisitions,this paper complements the special risk of cross-border merger and acquisition of Internet enterprises.The paper then introduces the qualitative and quantitative methods of risk assessment,and the qualitative risk assessment method is used to identify the risks of cross-border mergers and acquisitions of Internet enterprises in the machinery manufacturing industry.Then,AHP(analytic hierarchy process)is used to construct a risk evaluation index system for cross-border mergers and acquisitions of Internet enterprises in traditional machinery manufacturing industry.The risk assessment model is established based on the index weight determined by the questionnaire survey.Then,combined with practical case of Hengda Hightech M&A Changsha Jufeng,the risk assessment model established in this paper is applied in practice.Combined with fuzzy comprehensive evaluation method,the risk of this merger is analyzed quantitatively.After the preliminary verification of the model results through the new financial analysis of Hengda Hightech before and after the merger,it is concluded that the risk assessment model established in this paper can accurately evaluate the risk of the merger.In the end,this paper puts forward some suggestions to prevent risks based on the risk indexes with large weights,so as to provide references for the cross-border mergers and acquisitions of Internet enterprises in traditional machinery manufacturing industry in the future.The contribution of this paper is to supplement the special risks of cross-border mergers and acquisitions of Internet enterprises on the basis of the general risks of mergers and acquisitions,including industry selection risk,valuation risk,professional risk,profit forecast risk,online and offline business integration risk and customer integration risk.The risk assessment model of cross-border mergers and acquisitions of Internet enterprises in traditional machinery manufacturing industry is constructed,and the results of the model are verified by a practical case.The deficiency of this paper is that due to the limited personal knowledge and ability,the indexes of the risk assessment system may not be comprehensive and detailed,and due to the subjectivity of the questionnaire results,the results of the risk assessment model may not be completely objective.