Research On Financial Risk Prevention Of R Company’s Continuous M&A

In China’s real estate industry,M&A is a very common commercial activity.Among them,some enterprises are not satisfied with single merger and acquisition activities,but tend to multiple mergers and acquisitions,and they are carried out in a short period of time,this kind of continuous merger and acquisition behavior is easy to make enterprises suffer higher financial risks.As one of the large real estate enterprises in China,R Company has been established for a short time,but it is very bold in M&A.Since 2015,R company has carried out a number of M&A activities in just a few years,which is extremely rare in the industry.Therefore,this article choose R company as the research object,by continuous acquisition and the concept of financial risk definition and relevant theories as the foundation,analyzed the characteristics of the real estate industry and the status quo of the mergers and acquisitions,and sums up the R company’s merger and acquisition process,in-depth analysis of the M&A motivation,combining qualitative research and quantitative research,this paper makes a comparative analysis of the changes of financial risks in the process of continuous mergers and acquisitions from the perspective of time axis,summarizes the current situation of preventing risks,and finds out the problems existing in R company’s risk prevention process in the whole process of continuous mergers and acquisitions.Finally,the countermeasures and suggestions for the causes of different risk problems are put forward.Through an in-depth study of R company’s continuous mergers and acquisitions,this paper found that R company’s prevention of financial risks in the process of continuous mergers and acquisitions is insufficient,with the following problems:Influenced by macro policies and industry characteristics,enterprises tend to adopt debt financing and cash payment for mergers and acquisitions,resulting in high assetliability ratio,reduced debt paying ability and high financing cost.In addition,R company’s asset integration efficiency is low,and there is still a lot of room to improve the integration ability.Due to the comprehensive influence of the above problems,R Company performs poorly in the financial risk prevention of continuous mergers and acquisitions.It should investigate target enterprises through multiple channels and reasonably question the authenticity of data,broaden financing channels,innovate payment methods and prudently conduct cross-industry mergers and acquisitions to prevent financial risks.