Research On Financial Risk And Prevention Of Merger And Acquisition Of China Literature And New Classics Media

With the expansion of Internet users and the increase of network penetration rate,the Internet has affected all aspects of life and changed the way of shopping,payment and entertainment.In the process of Internet enterprise development,users' demand for content in the platform has gradually increased,and more attention has been paid to information.Scope and quality.Internet companies have begun to diversify.However,Internet products are updated quickly,so companies with strong profitability usually choose to expand their advantages through investment acquisition,integrate the superior resources of the upstream and downstream markets,and seek synergies.Internet mergers and acquisitions are often carried out across industries.However,in the case of high payment considerations,the success rate of mergers and acquisitions is not high.In this series of mergers and acquisitions,the financial risks are more significant,paying attention to financial risk analysis and prevention,and it is helpful for the smooth progress of mergers and acquisitions.This paper summarizes the relevant literatures,and after reviewing the risks in the last three periods before and after the merger,it selects the reading group to acquire Xinli Media as a research case,and analyzes the financial risks in the corresponding period in this M&A activity.And some relative defense suggestions were put forward.First of all,the article clarifies the background and significance ofthe research,and defines related concepts such as Internet companies,mergers and acquisitions,and financial risks of mergers and acquisitions.Then,it introduces the profiles of mergers and acquisitions and the process of mergers and acquisitions,and finally analyzes the financial risks in the process of mergers and acquisitions.And give suggestions accordingly.The article analyzes the financial risks and their causes in this merger,and puts forward suggestions.From the perspective of M&A,by analyzing the relevant financial indicators,non-financial factors and short-term stock price fluctuations of Xinli Media,it is believed that China Literature should conduct a detailed investigation on the profile of the M&A,the industry,financial and non-financial status.Third-party agencies can be hired to analyze and value them.From the perspective of mergers and acquisitions,according to the analysis of payment methods and solvency,it is thought that it may bring financial pressure to daily operations,so choose a variety of internal and external financing channels.China Literature should pay attention to the use of funds,establish a reasonable and effective financial integration system,and strengthen corporate culture integration.This paper analyzes the valuation risk,payment risk and integration risk of the company through the acquisition of Xinli Media,and proposes financial risk prevention suggestions such as multi-angle due diligence and evaluation,reasonable choice of payment time,and focus on financial and cultural integration.It has certain reference and reference role when other Internet companies conduct mergers and acquisitions.