Research On Financial Risk Prevention Of Internet Enterprise Mergers And Acquisitions

The Internet was born in 1969 and has been in development for 40 years.After the development of Internet technology from the military field to the civil field,it has penetrated into all aspects of people's production and life,and enabled human beings to enter the information age,which in turn led to the development of related industries and formed the Internet industry.The Internet industry relies on information technology and uses the Internet platform for data collection and analysis to provide more convenient services.At present,the combination of Internet companies and traditional industries is becoming more and more extensive.Many enterprises have realized Internetization,and the boundaries between Internet companies and traditional enterprises have become increasingly blurred.The "Internet+" and "+Internet"concepts put forward by the government have made the integration of Internet companies and traditional enterprises closer.Internet companies have further expanded their business areas and become more substantive.This also stimulates the rapid development of Internet companies through mergers and acquisitions.In the process of M&A of Internet companies,it is necessary to prevent the occurrence of financial risks.Through the study of the case of Alibaba's acquisition of Ele.me,on the one hand,we can find the financial risks that the case company Alibaba will encounter during the merger and acquisition process;on the other hand,it can also provide targeted advice on the prevention of financial risks.Therefore,it can provide reference experience for financial risk prevention in the merger of other Internet companies.Through the study of actual cases,the paper supplements the existing financial risk related theories of M&A of Internet companies and continues to build on the research of predecessors.The paper is divided into six parts.The first part introduces the background,the purpose and significance of the research,summarizes the previous research results,research content,research methods and possible contributions.The second part introduces the relevant theories and concepts of research.The third part introduces the development of Internet companies.The fourth part specifically analyzes the case.The fifth part proposes preventive measures for financial risks.The sixth part is the conclusion after the study.After completing the case study,the conclusion ofthis paper is that financial risk mostly could exist in the stage of valuation and integration.These two stages have significant loss uncertainty what may cause financial risks.