Research On The Problems And Countermeasures Of Financial Risk Control Of N Company's Transnational M&A H Company

The continuous development of the global economy has affected Chinese companies.In order to enhance their competitiveness and enter the overseas market,many companies have chosen cross-border M&A transactions.In the process of cross-border M&A transactions,companies also face many financial risks and non-financial risks.Based on scholars' research on the control of financial risk of cross-border M&A transactions,this paper sorts out the types and causes of financial risks in cross-border M&A transactions.The financial risks of M&A transactions exist in the process of preparation and implementation of transactions,which are expressed as pricing risks,financing risk,payment risk and exchange rate risk.In the M&A transaction,the main link in controlling these financial risks is to identify risks,assess risks and deal witth risks.The case selected in this paper is the multinational merger and acquisition of H company in China's department store retail enterprise N.It analyzes the financial risks faced by N company in this M&A transaction and evaluates all aspects of N company's control of financial risk.In response to the financial risks of the M&A transaction,Company N still has some improvements:lack of identification of exchange rate risk steps;measurement of target enterprise value results are high;payment method constraints reduce asset liquidity;limit financing structure,weaken solvency.The reason is that the company does not pay more attention to exchange rate risk;it lacks attention to the operation status of the underlying physical assets;it can only choose the payment method of cash,which affects the financing structure.In order to improve these deficiencies,this paper puts forward the following suggestions:improve the risk identification link,pay attention to exchange rate risk;use authoritative intermediaries to reasonably evaluate enterprise value;choose multiple payment methods to optimize financing structure;scientifically formulate strategies and consolidate risk control system.Therefore,in the process of financial risk control,the uncertainty of cross-border M&A transactions is reduced.Cross-border M&A itself is a complex trading activity.When conducting cross-border M&A transactions,enterprises should increase their sensitivity to relevant financial risks.By means of intermediary professional institutions,they can take advantage of M&A transactions to ensure the benefits of M&A transactions and achieve synergy.The effect lays a solid foundation for the future international development of the company.