Research On Financial Risk Control Of Ctrip’s Acquisition Of Qunar

Under the rapid development of modern society and economy,more and more The advent of the "Internet+" era has promoted the organic integration of Internet companies and traditional companies,and online travel(OTA)has emerged.OTA has the characteristics of light asset management,unstable market environment,and faster technology.These uncertainties have led to higher financial risks in mergers and acquisitions in the industry and are different from traditional industries.Therefore,for enterprises in this field,it is of practical significance to analyze the financial risk in the merger and acquisition through specific cases and put forward corresponding financial risk control measures.Based on the financial data available in the capital market,this paper identifies and analyzes the financial risks in the three stages before,during and after the merger.It is found that there are the following financial risks in the whole process of M&A:The valuation before M&A is too high;The 100 % share exchange payment method is unreasonable at the time of merger and acquisition;After the merger,the profit space becomes smaller,the financial structure is unreasonable,the management system is not perfect,and the assets are not integrated properly.Using DuPont analysis method and factor analysis method to further evaluate the impact of the above financial risks,it is found that after Ctrip merger and acquisition,there is no effective integration of the overlapping costs and costs,and the high cost is the main factor that affects the decline of profit space after merger and acquisition.In view of the above conclusions,the following financial risk control measures are proposed:The company should fully evaluate the value of the acquired party according to its absorptive ability to determine the appropriate merger price.Ctrip should choose the appropriate payment and financing method according to its ability to pay and actual operating conditions.After the merger,Ctrip should actively improve the financial management system,strengthen the integration of assets and market business,and adjust the financial structure appropriately.The research of this thesis is helpful to cultivate the whole risk consciousness in the M & A management Fangzai M & A process,deal with and prevent the financial risk in the M & A process,and accelerate the realization of the strategic goal of Ctrip M & A.It also provides reference for other OTA companies in the future merger and acquisition behavior.