Research On The Risk Of Continuous M&A Of Oceanwide Holdings

In recent years,with the continuous development and changes of the capital market,enterprises seek more development on the premise of good business development,and M &A has always been a rapid way for enterprises to expand their business scope.M&A enthusiasm in various industries continued to rise.For China’s real estate industry,after a period of rapid development,the competition among enterprises in the real estate industry is more intense.In order to expand their advantageous position,some enterprises often adopt the way of M&A to realize the rapid expansion of their business scale.Especially in recent years,real estate enterprises have experienced comprehensive market-oriented reform.Coupled with the influence of external macroeconomic policy regulation,the development growth rate of the real estate industry is limited,which makes the transformation and development momentum of real estate enterprises more obvious.Enterprises can expand their business scope in the industry,enhance their competitive advantage and consolidate their position in the industry through mergers and acquisitions of enterprises in the same industry;We can also find new profit growth points through mergers and acquisitions of enterprises in other industries,enrich our own business types and carry out diversified development.The continuous M&A behavior of enterprises is often closely related to the strategic objectives of enterprises.Continuous M&A in a short time can realize the strategic transformation of enterprises.This paper takes the strategic transformation of Oceanwide Holdings through continuous M&A as the research object,and studies the risks it may face in the process of continuous M&A.Firstly,combined with the relevant research conclusions on continuous M&A and M&A risk in the existing literature,this paper introduces the strategic transformation and development plan made by Oceanwide Holdings in 2014 for the further development of the enterprise in the face of the severe internal and external situation of the enterprise.This paper combs the continuous M&A process of Oceanwide Holdings in recent years in chronological order.The possible risks in this process are analyzed qualitatively.Combined with the risk events of enterprise wind in different development stages,it is identified that there may be strategic decision-making risk,environmental risk,financial risk and integration risk in the process of continuous M&A.Secondly,the fuzzy analytic hierarchy process is used to construct the risk index evaluation system of continuous M&A of Oceanwide Holdings,and the fuzzy comprehensive evaluation calculation of risk factors is carried out.It is found that Oceanwide Holdings has high financial risk in the process of continuous M&A.Further analyzing the risk causes,we draw the following conclusions: the risk root of continuous M&A of Oceanwide Holdings is that the selected target industry has the risk characteristics of high leverage,and continuous M&A requires a large amount of capital reserves;The frequency of continuous M&A is too high,the industry cannot be effectively integrated after M&A,and the synergy of industry and finance cannot be brought into play;There is a lack of comprehensive risk management system within the enterprise,so it is unable to find risks and take countermeasures against risks in time and effectively.Finally,in view of the continuous M&A risk faced by Oceanwide Holdings,this paper puts forward that we can alleviate the capital pressure and reduce the financial risk by adjusting the asset liability structure.Moreover,we should formulate scientific and complete M&A integration work,fully integrate personnel and business;And Oceanwide Holdings should optimize its internal risk management process,establish and improve its risk management system and improve its sensitivity to risks.Through the case study of continuous M&A of Oceanwide holdings,this paper studies the diversified strategic transformation of real estate enterprises through continuous M&A of financial enterprises,analyzes the risks in this continuous M&A process,comprehensively evaluates the identified risks with appropriate risk evaluation methods,and puts forward solutions on how to control and deal with them.