Financial Risk Case Study Of Zhongheng Group’s Acquisition Of Laimei Pharmaceutical

Nowadays,with the booming of market economy,m&a has become the most direct and effective choice of development mode.Many companies choose to merge their resources in order to maximize and create greater economic benefits.However,there are certain financial risks in the process of merger and acquisition,which are ignored by optimistic profit forecast.In the previous case studies,most scholars have concluded that only a very small number of m&a actions have brought about synergies,while the rest failed to meet the desired expectations of the companies.From this point of view,it is very important for the executor to strengthen the cognition of the financial risk of m&a.Moreover,the financial risks of mergers and acquisitions should be identified and evaluated effectively to find feasible financial risk prevention measures.Besides,the study of financial risks in previous mergers and acquisitions cases can also provide certain reference for enterprise decision makers.This thesis has a complete knowledge and certain understanding of m&a financial risk after reviewing the research on m&a financial risk by internal and external scholars.Combined with the previous review,the concept of m&a financial risk has been defined in detail,based on the review of relevant theories,a systematic theoretical analysis and research on the content of corporate m&a financial risk has been conducted.In domestic mergers and acquisitions cases,there are relatively few examples of listed companies merging with listed companies,especially in the pharmaceutical industry where mergers and acquisitions cases are more typical.Therefore,we take Zhongheng Group’s acquisition of Laimei Pharmaceutical as the research object and analyzes the case of the acquisition.First of all,a series of possible risks are identified based on the previous concept definition,while the identified financial risks are weighted using the analytic hierarchy process(ahp)to derive the relative weight ranking and combined with the fuzzy comprehensive evaluation method to calculate the comprehensive evaluation value,and finally the analysis is carried out based on the financial risk score results.Based on the analysis of the above results,and finally,through the Zhongheng group acquisition of Laimei pharmaceutical case,this paper proposes enlightenment and reference for the identification and analysis of different types of financial risks and the risk prevention measures that should be taken for the corresponding financial risks,mainly including that enterprises should choose valuation models carefully to avoid overly optimistic profit forecasts and consider diversified payment methods,etc.It is hoped that this case study can be a complement to the analysis and prevention of financial risks of mergers and acquisitions in China’s pharmaceutical industry,and play a role in improving the synergistic effect of mergers and acquisitions.