Research On The Financial Risk Management Of HX Company M&A DZ Company

Under the influence of economic globalization and increased international trade,Chinese enterprises have seized the opportunity to start cross-border mergers and acquisitions,through which to expand their influence and expand overseas markets,in order to accelerate the process of enterprise internationalization and improve the comprehensive strength of enterprises.At the same time,due to the imperfect laws and regulations of China’s cross-border mergers and acquisitions and inadequate government information services,enterprises have encountered some difficulties in the process of mergers and acquisitions.Because Chinese enterprises have little experience in cross-border M&A,they can’t control the financial risks in time,so many cross-border M&A results are not ideal.Therefore,how to analyze and identify the financial risks in cross-border mergers and acquisitions,and how to effectively control these financial risks,is related to the success or failure of cross-border mergers and acquisitions.Studying the management of financial risks in mergers and acquisitions can improve the effect of mergers and acquisitions,and provide reference and suggestions for controlling financial risks in future mergers and acquisitions.HX Company is a manufacturer of home appliances in China,and the sales volume of home appliances has always been in the forefront of the industry,but HX Company has also encountered the bottleneck of stagnant technology research and development.HX Company has a high market share in China,but a low market share in overseas markets.The competition in the domestic household appliance industry has reached a white-hot stage,with little room for profit growth,while the overseas household appliance market is still very broad.Therefore,it is necessary for the company to open up overseas markets and enhance the internationalization level of enterprises.HX also hopes that both parties can complement each other in technology and achieve a win-win situation through mergers and acquisitions.HX Company is faced with some financial risks in cross-border mergers and acquisitions,so the company should pay attention to controlling the financial risks in mergers and acquisitions,so as to improve the efficiency of mergers and acquisitions.Based on the case of HX Company’s merger and acquisition of DZ Company,this paper first introduces the research background,research purpose,research significance and research methods of this paper,and at the same time,sorts out the literatures about M&A risks at home and abroad.Secondly,this paper introduces the situation of HX Company and DZ Company.On the basis of in-depth study of M&A cases,it analyzes that there are four risks in M&A,such as pricing,payment,financing and integration.Based on COSO risk management framework,it puts forward a financial risk management scheme for M&A of HX Company,and analyzes how to identify,evaluate,deal with and monitor the financial risks in M&A..Finally,in order to effectively implement the financial risk control scheme,this paper also puts forward some safeguard measures for risk control.This paper studies the financial risk management of DZ Company acquired by HX Company,hoping to provide some suggestions on how to manage financial risks in cross-border mergers and acquisitions in the future.