Research On Risk Management Of Listed Companies' M&A Financing

Throughout the development of the global economy,the trend of intergration is becoming more and more obvious,and more enterprises prefer to choose mergers and acquisitions.Faced with this background,listed companies in China have become one of the major mergers and acquisitions,both the amount of mergers and acquisitions and the frequency of mergers and acquisitions have increased significantly.By mergers and acquisitions,listed companies can not only expand the scale of their operations,but also produce synergistic effects of mergers and acquisitions,including improving their own operating level,enhancing their market position and industry competitiveness,and so on.Through continuous mergers and acquisitions,Blue Focus only use seven years to enhance the value of the company greatly,so people from all walks of life pay more attention to the continuity of mergers and acquisitions.However,for any company,if it wants to improve its competitiveness by expanding its business scale in a relatively short time,it will have to face a higher M&A risks.After a short period of continuous M & A,the Blue Focus gradually reveals the risk of M & A,the growth rate of scale decreases,and the growth rate of profit slows down,which is getting closer and closer to the critical point of economies of scale.By 2015,the net profit of Blue Focus has shown a sharp downward trend,which is attributed to a variety of risks intertwined.Only when the listed companies have sufficient funds,the merger and acquisition activities will proceed smoothly.However,not every company has enough internal funds to support M & A activity.At this time,listed companies need to raise M & A funds through debt financing or equity financing in the capital market to ensure the smooth completion of M & A activities.However,any financing behavior has a certain degree of risk,if the management does not carry out reasonable risk management,it may affect the subsequent normal operation of listed companies.Therefore,listed companies must pay enough attention to the financing risk and take effective measures to prevent and control the financing risk.Then,in the process of M & A financing,how to identify,evaluate,prevent and control risks has become a difficult problem in the risk management of M & A financing of listed companies.For this reason,this paper takes the M & A financing case of Blue Focus Company as a sample,reviews the general situation of M & A of Blue Focus Company and its financing behavior,under the guidance of risk management theory,through the combination of qualitative description and quantitative analysis.On this basis,the risk of M & A financing is identified;on this basis,the risk of M & A financing is evaluated by using risk methods such as financial leverage coefficient and F-value model.Finally,the corresponding risk prevention and control measures are put forward at the two levels of pre-defense and post-control.This paper expects to provide useful reference for the risk management of M&A financing of other listed companies through the case study of M&A financing with Blue Focus.