Research On Financial Risk Of BY HEALTH's Transnational M&A LSG

With the deepening of economic globalization,in order to seek new markets and new profit growth points,more and more enterprises in China are investing in the tide of cross-border mergers and acquisitions.Since the participating companies are in different countries and have many differences in political,economic and cultural backgrounds,the financial risks such as valuation risk,financing payment risk,exchange rate risk and operational integration risk are often more complicated.It may even lead to the failure of the entire merger and acquisition case.Therefore,studying the financial risk management of cross-border mergers and acquisitions of enterprises is of great significance to promote the success of cross-border mergers and acquisitions.This article selects By-Health's acquisition of Australian health care product LSG as an example,taking the risk identification,risk assessment and risk response of the company in the process of cross-border M&A as the main line,and deeply analyzing the possible experience of By-Health in the process of cross-border M&A.Valuation risk,financing and payment risk,exchange rate risk and operational integration risk.At the end of the article,based on the effect of this M&A risk response,it puts forward suggestions for the shortcomings of By-Health's cross-border M&A financial risk management activities.In recent years,By-Health has been actively engaged in overseas distribution,and wants to further introduce By-Health into an internationally renowned brand of health care products through the introduction of advanced technology and resources through mergers and acquisitions.With the further expansion of the overseas expansion strategy of By-Health in the future,the number of overseas mergers and acquisitions is bound to increase further.In the process of the acquisition of LSG by By-Health,the Earn-out program was set up to prevent and control the valuation risk and the M&A fund was introduced for financing,which effectively prevented the valuation risk and financing risk.By analyzing and summarizing the effective preventive measures and deficiencies taken by By-Health in this merger and acquisition,and combining relevant theories,this paper greatly enriches China's theoretical research on cross-border mergers and acquisitions and conducts cross-border mergers and acquisitions for By-Health and other companies in China in the future.Effective identification and prevention of related financial risks can serve as a reference.