Ctrip's Merger And Acquisition Of Qunar.com's Financial Risk Control Case Study

The National Tourism Administration announced in its "515 Strategy" that it should actively promote the transformation and upgrading of tourism,improve quality and efficiency,and accelerate the process of tourism modernization,informatization and globalization.The State Council has also issued relevant policies on the tourism industry,advocating the development model of "online+tourism".While the online travel industry is developing rapidly,more and more participants are pouring into and dividing up the market,intensifying competition within the industry.In addition to innovating technologies and concepts,some companies that first entered the online travel industry intend to increase their strength and expand markets through M&A activities.M&A activities in the industry are not uncommon.However,M&A activities are not simple and may cause many risks,among which financial risks are the most prominent and run through.Therefore,the prevention of financial risks in M & Aactivities is essential to improve the success rate of M&A.This paper uses Ctrip.com's M&A Qunar.com as an example and uses the literature research method and case analysis method to analyze its control of financial risks in M&Aand its effect.First,it summarizes relevant research at home and abroad,and clarifies the relevant concepts of corporate mergers and acquisitions,financial risk and control.Immediately understand the industry status of the online travel industry where the M&A case is located,and analyze the macro environment of the industry's M&A in combination with the PSET analysis method.After sorting out the reasons and processes of the merger and acquisition,the detailed analysis of the financial risks in the merger and acquisition process includes: valuation,financing and payment,equity dilution and integration risks.On this basis,it focuses on the measures taken by Ctrip to prevent financial risks in mergers and acquisitions and the control effects achieved,through due diligence and improving valuation processes and methods to deal with valuation risks before mergers and acquisitions;through equity replacement and issuance Convertible bonds and formulate anti-acquisition plans to prevent financing and payment risks in mergers and acquisitions,and anti-dilution risks of equity;through the establishment of integration committees,adjustment of business strategies,and strengthening the integration of human resources,financial mechanisms and the culture of both parties to deal with post-merger acquisitions integration risk.From the perspective of information acquisition,obtained valuation,capital structure,cash flow,and synergy effects,analyze the effect of financial risk control achieved by Ctrip.com.Finally,combined with the case of Ctrip's merger and acquisition of Qunar.com's financial risk control case,it puts forward suggestions on the prevention of financial risks in industry mergers and acquisitions,hoping to provide reference and reference for other online travel companies.