Research On Financial Risk Of Shanghai Electric M&A Yinghe Technology

Since the Third Plenary Session of the 18 th CPC Central Committee,the reform of state-owned enterprises has defined the main line of its new period,encouraged state-owned enterprises to introduce strategic investment,and supported mergers and acquisitions with private enterprises.In this context,the merger and acquisition of private enterprises by state-owned enterprises will become an important way to broaden the industrial structure and adjust the strategic direction,showing a distinct development orientation and policy orientation.M&A is a complex systematic project,which is an organic combination of multiple stages from preliminary preparation to final integration.At the same time,in the process of M&A,financial risk management is an important part,which will run through the whole M&A process and have a far-reaching impact on future development.When state-owned enterprises merge private enterprises,due to the great differences between the two sides in business model,financial system and corporate culture,their M&A behavior will face greater financial risks.Therefore,it is necessary to analyze the whole process of M&A and put forward more reasonable countermeasures for this kind of financial risk.This thesis selects the case of Shanghai Electric M&A Yinghe technology,and makes a case study and analysis by using the methods of literature research,case study and data research.Firstly,combined with the research significance and research background,this thesis combs the relevant literature and analyzes the financial risk of M&A of state-owned enterprises in China.Based on the theoretical research of M&A of state-owned enterprises,combined with the actual situation of Shanghai Electric M&A Yinghe technology,this thesis analyzes in detail the possible information asymmetry risk,valuation risk,solvency risk,cash flow risk,system integration risk and industry risk in the three stages of M&A by using the theories of transaction cost,synergy effect and principal-agent,According to the financial risk analysis,this thesis puts forward the corresponding preventive measures and summarizes the universal conclusions.Through the research,this thesis draws the following conclusions:(1)Shanghai Electric’s M&A of Yinghe technology is a positive M&A,which improves the enterprise development layout,improves the utilization efficiency of market resources and injects the vitality of enterprise development;(2)Through the research on Shanghai Electric’s M&A of Yinghe technology,it is found that there are generally information asymmetry risk and valuation risk before M&A;In the process of M&A,M&A enterprises need to pay attention to their own solvency risk and cash flow risk;After M&A,state-owned enterprises should pay attention to the integration risks of enterprise management system,enterprise culture,development strategy and the industry risks of the merged enterprises;(3)When state-owned enterprises merge private enterprises,they need to pay attention to every step in the process of M&A: conduct detailed information investigation on the merged enterprises before M&A,and formulate detailed and appropriate M&A plans in combination with the characteristics of their own enterprises and target enterprises;In M&A,we need to make reasonable planning and choose appropriate means of payment according to our own asset structure and other conditions;After M&A,we should pay attention to the integration of various systems among enterprises,formulate a reasonable management reward and punishment system,and make a mutually beneficial strategic plan.