Research On The Financial Risks In Suzhou Anjie Technology’s Continuous Mergers And Acquisitions

In recent years,there were more and more high premium merger and acquisition(refer to M & A)of listed companies,which led to high goodwill impairment,improper financing and payment methods,resulting in the imbalance of the financial structure of M & A enterprises and even the rupture of the capital chain.All of these make acquirers face a series of financial risks,which will conduct dynamically and will lead to the spread of M& A financial risks from point to surface,thus bringing financial crisis and operation crisis to acquirers.For continuous acquirers,the financial risk and its spread are continuous and superimposed,and the impact on acquirers will be stronger.Therefore,the prevention and control of M & A financial risk is the important and pressing issues of acquirers.Anjie technology’s performance has declined rapidly since listing.In order to improve its performance,diversify and extend the industrial chain,Anjie technology has embarked on the road of continuous M & A since 2014.However,continuous M & A did not bring the expected benefits to Anjie technology.On the contrary,there were adverse financial consequences such as high goodwill impairment,sharp decline in profits and sharp decline in share price.Therefore,it is also particularly important for Anjie technology to prevent and control the financial risks of continuous M & A.This thesis adopts the methods of literature and case analysis,and analyzes the financial risk of continuous M & A of Anjie technology based on M & A synergy theory,information asymmetry theory and risk management theory.The thesis focuses on the continuous M & A process,motivation,financial risks and causes of continuous M & A,transmission process and consequences of financial risks of Anjie technology,and puts forward measures and countermeasures to control the financial risks of continuous M & A of Anjie technology.Through the research,it is found that the causes of the financial risk of continuous M& A of Anjie technology are the over evaluation of the acquired enterprise,the failure to choose reasonable financing methods and payment methods,and the unreasonable design of performance compensation commitment.Among them,the valuation risk caused by the over evaluation of the acquired enterprise is the trigger point of the financial risk of continuous M & A of Anjie technology,causing other risks.Accordingly,the thesis puts forward some conclusions to prevent and control the financial risk of continuous M & A,focus on preventing and controlling the risk of value assessment,make the correct M & A decisions,increase profitability of the acquired enterprises,resume and revise the continuous M & A strategy.The innovations are presented as below.Identify that the source of M & A financial risk is improper M & A financial decisions,and propose to block the transmission of M &A financial risk from the source by improving the accurate performance of M & A financial decisions,so as to avoid the development path of growth and outbreak of M & A financial risk.Meanwhile,the thesis identifies the key factors according to the financial risk transmission path of M & A,and puts forward the use of key factors to block the financial risk transmission.Through the above two methods,the goal to manage the financial risk of M & A can be achieved.