Research On Financial Risk Control Of Enterprise Mergers And Acquisitions

With rapid economic development,more and more companies are using mergers and acquisitions to gain market share,gain economies of scale and thereby increase their competitiveness and strategic territory.I want that.With the globalization of the world economy today,opportunities and challenges are parallel.Not only do we need to see opportunities for companies to expand and increase their profits through mergers and acquisitions,but we also need to consider the financial risks involved in mergers and acquisitions,such as the pressure on cash flow and both companies.Barriers to integration and other problems.In recent years,semiconductor display companies have seen a rapid increase in buying and selling,and in some cases,buying and selling have failed.Therefore,in order to increase the success of mergers and acquisitions of semiconductor display companies and enable semiconductor display companies to continue to develop in a healthy and sustainable manner after mergers and acquisitions and to achieve the strategic goal of achieving synergies.It is very important to examine the financial risks of mergers and acquisitions.In 2020,BOE Group acquired Nanjing and Chengdu Zhongdian Panda Company,this M&A transaction amounted to 13.1 billion RMB,which is the largest cash acquisition in the history of Chinese LCD panels,and the resulting M&A financial risk is high,therefore,this paper is studied under this topic.After introducing the background and significance of the article’s research,a review of relevant foreign literature is presented,followed by an explanation of the basic concepts of M&A and M&A financial risk,followed by an analysis of the theoretical foundations of the full study,such as the theory of diversification and the theory of coordination effects.In the third part,on the basis of describing the current situation of M&A in the semiconductor industry,the brief profiles of the M&A parties,the M&A process and the motivation of M&A in the cases of BOE’s M&A of Nanjing and Chengdu Zhongdian Panda are introduced.In the fourth part,the various financial risks of BOE’s M&A of Nanjing and Chengdu Zhongdian Panda are analysed in three stages: before,during and after the M&A,and the risk control leakages are diagnosed.This leads to the fifth section,which proposes specific recommendations for financial risk control in BOE’s M&A process,such as choosing appropriate enterprise valuation methods,comprehensive use of payment methods and strengthening capital management.The identification and control of financial risks in M&A can not only promote the success of M&A,but also help to enhance the competitiveness of enterprises and facilitate their further expansion and diversification.Through a comprehensive study of the financial risks of BOE’s M&A,the thesis will not only identify the financial risks in this M&A and prevent them,but also provide reference materials for other M&A of the same type.