Study On The Financial Risk Of Yiwang Yichuang Merger And Acquisition Of Shangbai E-commerce

The information age drives the development of Internet enterprises,and the merger and acquisition activities increase accordingly.The merger and acquisition process is easily affected by financial risks,which hinders the development of merger and acquisition enterprises.Therefore,reducing the financial risk of M&A plays a key role in the stable development of enterprises.This paper sorted out the current literature research,combined with the relevant basic theoretical research on the financial risks of MERGERS and acquisitions,and concluded that the financial risks of mergers and acquisitions exist in the three stages before,during and after mergers and acquisitions.Through the case study of The merger and acquisition of Shangbai E-commerce by Yiwang Yichuang,the reasons for the emergence of financial risks of merger and acquisition are analyzed and the enlightenment of risk prevention is proposed.The specific research is as follows:(1)introduce specific case companies,analyze the advantages that both parties can obtain through m&a,and conclude that the acquirer has the motivation to realize industrial diversification,layout new industries and expand the profit range.(2)Analyze the financial risks of the case company according to the time sequence of m&a.First of all,through the comparative study of different valuation methods of Shangbai e-commerce,it is concluded that the risks before m&a not only exist external factors caused by the acquirer,such as the unreliable financial information,but also internal factors such as the pressure of the acquirer to expand new business and achieve their own profit goals;Secondly,by studying the financing and payment process of Yiwang Yichuang,it is found that not only financing and payment methods will bring financial risks in M&A,but also the time of payment has a significant impact on M&A.Finally,post-MERGER is a crucial stage.This paper uses z-value model before and after MERGER,comparison of financial indicators in the industry and EVA analysis to study this stage.It is found that Yiwang Yichuang failed to formulate integration plans in a timely manner,resulting in fluctuations in operations before and after merger.(3)Put forward some risk prevention enlightenment,before THE merger and acquisition need to pay attention to the prudent formulation of merger and acquisition planning,choose the appropriate valuation method to pay attention to the review of light assets;In m&a,it is necessary to flexibly use financing and payment methods and time;After the merger and acquisition,we should improve the integration plan and increase financial support for new business.This paper not only summarizes the enlightenment of one Net one Innovation financial risk prevention,but also puts forward suggestions on its shortcomings,in order to provide reference for other Internet enterprises merger and acquisition financial risks.