Research On Financial Risk Of Enterprise Merger And Acquisition

In today’s society,China’s national economy is growing steadily,and the public’s requirements for the current living standard are gradually improving.At the same time,with the aging trend of the population and the impact of the baby boom period,and under the background of the COVID-19,the government,society and personal medical expenses and medical equipment expenses have increased significantly.Accordingly,the state has increased relevant investment and introduced new policies to vigorously support the development of medical enterprises.Therefore,the industry expansion field of medical devices will become very broad,and China’s overall strength in this field will be enhanced,gradually approaching the international level.During this period,such a profiteering commercial industry was discovered by more capitalists.Many medical device industry giants increased investment and strengthened commercial layout.Mergers and acquisitions occurred frequently,and all major enterprises wanted to take a share in this big pot.However,M & A is not an easy thing.The process will usually cause huge financial fluctuations and bring financial risks.Its success and failure will be directly related to the final rise and fall of the enterprise.If it is not prevented and controlled,it will increase the financial burden of the enterprise.Therefore,although many enterprises try to increase investment by it,few enterprises achieve their goals.At this time,it is particularly necessary to study the financial risk of M & A in the medical device industry.Yuyue medical is one of the leading enterprises in China’s medical device industry.It has won the honorary status of single champion medical products for many years with a business history of more than 20 years.At the same time,it has a perfect service network and is committed to R & D,production,sales and follow-up services.In its development process,it has carried out major M & A activities for many times,accumulated a lot of experience and lessons,and had unique insights into each step.This paper selects the case Zhongyou medicine from its many M & A events for in-depth research and thinking.This paper is divided into six parts.The first part introduces the research background,establishes the purpose and significance of the research,combs the definition,identification and evaluation of M & A financial risk at home and abroad,and plans to determine the research content and methods to pave the way for the development of the paper.The second part mainly discusses the theoretical basis of M & A.the financial risk and motivation,comprehensively expounds the meaning and types of it and the meaning and types are financial risk,and introduces the common evaluation methods of financial risk.The third part introduces specific cases,respectively introduces the specific situation and financial situation of Yuyue medical and Zhongyou pharmaceutical,expounds the motivation of Yuyue medical’s,makes a detailed introduction to the development of Yuyue medical in recent years after the process,makes a core point analysis on the financial risk of its activities,and puts forward that the risk sources of it are mainly pricing risk Financing risk,payment risk and integration risk.The fourth part is the core of this paper.By establishing the risk evaluation model and evaluation system,using analytic hierarchy process and fuzzy comprehensive evaluation method to determine the index weight and risk level,which includes the four indicators of the previous part.On this basis,it is divided into 12 three-level indicators,so as to make a quantitative analysis of the financial risk in the process of it.The fifth part,according to the analysis of the M & A results of Yuyue medical,obtains the suggestions for the future activities of the same industry,and puts forward corresponding countermeasures to help it prevent the crisis caused by financial turmoil and promote the long-term stability of development.The sixth part summarizes the research conclusions and puts forward the deficiencies according to the above contents.Through in-depth research,put forward corresponding countermeasures,which can effectively reduce the probability of financial risks and improve the success probability,so as to strengthen the grasp of financial risks in the medical device industry,prevent them from happening,and provide a feasible scheme for the future M & A activities of China’s medical device industry.