Analysis And Prevention Of Financial Risks In Internet Enterprise M&A

With the continuous development of the socialist market economy,in order to enhance its core competitiveness and open up a wider market space,mergers and acquisitions have become an important path for the development of many enterprises.In recent years,more and more corporate mergers and acquisitions have occurred in our country.Not only the number of mergers and acquisitions is increasing,but the amount involved in mergers and acquisitions has also increased significantly.Especially in the context of the era of the Internet + big data,some Internet companies have expanded their scale,reduced related costs,and quickly seized the market through mergers and acquisitions to achieve sustainable corporate diversification.As a leader in e-commerce companies,Alibaba's wholly-owned merger and acquisition of Tianhong Fund is its key strategy for intervening in the field of Internet finance and a useful supplement to the financial sector in its ecosystem.However,when Internet companies acquire financial companies,they must fully consider the characteristics of the industry and the environment for industrial development,as well as take into account the characteristics of financial companies and the development trend of the integration of the two,and also take care of changes in national policies.Based on the theoretical research and practical exploration results of financial risks related to domestic and foreign corporate mergers and acquisitions,this article analyzes the current status of Internet corporate mergers and acquisitions in China and the causes of corporate financial risks based on theories such as synergies,and discusses Alibaba mergers and acquisitions.The motivation and implementation process of Tianhong Fund reveals the pre-merger strategy development and target selection risk and valuation risk of Alibaba's acquisition of Tianhong Fund,the financing risk and payment risk in mergers and acquisitions,the financial integration risk and redemption risk after merger,etc.The financial risks in Alibaba's merger and acquisition of Tianhong Fund were specifically targeted from three aspects:pre-merger,mid-merger,and post-merger.The main conclusions are:(1)The top three sub-sectors in China's Internet corporate mergers and acquisitions are IT,mobile internet and e-commerce industries,which is consistent with the trend of increasingly diversified and mobile Internet industry.Due to the user attributes of Internet companies,usually after the market structure is stable,most of the major companiesremaining in each segment will not exceed three.Internet company mergers and acquisitions tend to occur among major competitors,and M & A tends to diversify,and M & A Post-integration is relatively light and other characteristics;(2)As a leading e-commerce company,the main motivation for its acquisition of Tianhong Fund lies in industry background + financial innovation,business development +service optimization,platform improvement + competitiveness enhancement,etc.,Alibaba Through a full range of mergers and acquisitions and reorganizations,it has gradually formed a development trend of vertical in-depth,horizontal extension,and cross-border integration;(3)Alibaba's M & A Tianhong Fund implementation process has pre-merger strategy development target selection risks and valuation risks.Financing risks and payment risks,as well as integration risks and redemption risks after mergers and acquisitions;(4)Alibaba's merger and acquisition of Tianhong Fund's financial risk prevention strategies should focus on: before the merger and acquisition,do a good job of target company research,optimize financial valuation models;Optimize financing structure,flexible payment methods,etc.in mergers and acquisitions;Business information,strengthen internal supervision,and integrate corporate culture.