A Case Analysis On The Risk Management Of Serial M&as Of Zhonghong

With the integration of the global economy and the rapid change of the competitive environment,in order to maintain their competitive advantage,enterprises continue to seek strategic transformation and business upgrading,many enterprises through a series of mergers and acquisitions to carry out strategic expansion.A successful series of M & A can achieve a win-win situation with the cooperation of business and finance,and achieve the creation of business value and financial value.On the contrary,the lack of reasonable risk management means will lead to the failure of a series of M & A,not only can't bring the increase of profits for the enterprise,cause the loss of enterprise value and the waste of resources,more easily bring the liquidity risk that can't be weighed to the enterprise and cause the financial crisis.The development of the real estate industry is gradually from the golden age to the silver age,and the living space of small and medium-sized real estate enterprises is constantly squeezed.In order to solve the problems of Enterprise Series M & a risk management,this paper takes a series of M & a risk cases of Zhonghong company as the research content,analyzes the internal development background,financial and operation status of Zhonghong company based on the macro background and industry status,takes the series of M & A events of Zhonghong company as the sample of case study,and describes the success of Zhonghong company in chronological order Since the establishment of the series of M & a process and the process of crisis outbreak,to explore the causes and mechanism of the series of M & A risks,has a strong timeliness and practical significance.First of all,based on the related research on the expansion and risk of Series M & A,this paper describes the transformation pressure of Zhonghong company under the influence of market environment,and chooses Series M & A to achieve its own transformation and move forward to multiple business areas at the same time.Secondly,the key part of the paper is case analysis.Along the course of Series M & A,this paper analyzes the background of Series M & A,the causes of Series M & A,the causes of Series M & A risks and the impact of Series M & A risks.It analyzes the decision-making process,Series M & a strategy and the industrial integration after Series M & A,and finds that there is a series of Zhonghong company The problems such as rough decision-making process,confusion of Series M & A strategies and difficulties in integration of Series M & A assets failed to bring real business value to enterprises,while the demand for high stock price covered up the lack of business value.When the systematic risk in the capital market leads to the decline of stock price,the decline of financial value of the company leads to the liquidity risk,which is also the main risk leading to the failure of a series of M & A.Finally,through the case study of Series M & a risk of Zhonghong company,it is found that the essence of Series M & a success is to achieve the creation of business value.The conditions for success are that the M & a target matches the M & a strategy and has a scientific evaluation process of Series M & a.the lack of enterprises that manage the M & a risk may lead to the failure of Series M & A.This paper takes the series of M & a risk events of Zhonghong company as the focus of case analysis,focusing on the lack of business value and financial mechanism to dig out the risks of series of M & A,which has an impact on the enterprises carrying out series of M&A.