Research On Financial Risk Control Of H Company’s Merger With T Company

At present,with the accelerating pace of China’s economic transformation,more and more Chinese enterprises are engaged in cross-border MERGERS and acquisitions in order to expand their scale and enhance their core competitiveness.Although Chinese enterprises have the support of national policies,cross-border M＆A is a complicated and long process,and each link is accompanied by different financial risks,resulting in a low success rate of M＆a in China.Therefore,it has practical significance and theoretical value to discuss the financial risk control of cross-border M＆A.However,at present,the research on cross-border M＆A in China is not thorough enough and is still in the development stage.Therefore,we need to further study and analyze the financial risks in the process of cross-border MERGERS and acquisitions,help enterprise managers choose appropriate methods to identify and evaluate the financial risks,and formulate scientific and reasonable measures for the existing financial risks.This not only promotes the perfection of China’s cross-border M＆A market,but also avoids the loss caused by financial risks to a certain extent.Therefore,the study of cross-border M＆A is very important.This paper takes the study of H company’s merger and acquisition of T Company as the main line.First of all,it adopts the method of literature review to comprehensively and objectively summarize and conclude the research results of domestic and foreign scholars,and makes a simple introduction to the related concepts and theoretical basis of financial risk in cross-border merger and acquisition.Secondly,the case analysis method is adopted to introduce the situation of H company and T company respectively,analyze the motivation of H company’s merger and acquisition of T company and T company’s motivation to sell its home appliance business,and objectively identify the financial risks in the process of H company’s merger and acquisition.Thirdly,the quantitative and qualitative analysis methods are adopted to construct an evaluation model,and the quantitative scale of semantics is quantitatively processed to intuitively evaluate the financial risk level of enterprises.Finally,the paper studies the measures taken by H Company to deal with the risk of the merger and acquisition.Through analysis,we can see that H company employs domestic and foreign experienced intermediary agencies to investigate the true and effective information of T company in various aspects and develop an effective acquisition plan.Through the introduction of strategic investors,leveraged buyout,the combination of self-owned cash and loan payment methods,the financing pressure has been alleviated to a certain extent;From the perspective of win-win cooperation,the two sides have realized effective integration.In general,the merger and acquisition of H Company has a significant risk control effect.While expanding business scale through cross-border m＆a,enterprises should pay attention to the sustainable and healthy development of enterprises in the future,and should not blindly merge for short-term interests.This paper hopes that enterprises can draw experience and lessons from the case of COMPANY H’s merger and acquisition of Company T,and finally achieve the success of merger and acquisition.