Research On The Financial Risk Control Of YT Company’s Merger And Acquisition Of BT Company

With the rapid development of China’s economy,market competition has become increasingly incentivized,and more and more enterprises choose to participate in mergers and acquisitions for reasons such as responding to market competition,optimizing resource allocation,implementing diversification strategies,and expanding the size of the enterprise market.Merger and acquisition activities are a complex and lengthy process,accompanied by various financial risks in the actual operation of enterprises,so many enterprises have failed to meet merger and acquisition expectations.We need to strengthen research and analysis between mergers and acquisitions in different fields,and properly prevent and control possible financial risks.This has played a certain role in promoting the improvement of China’s mergers and acquisitions market,so the research on financial risk control of mergers and acquisitions has significant practical significance for China’s enterprise mergers and acquisitions activities.This article uses the literature research method and case analysis method to study the merger and acquisition of BT Company by YT Company,identify the problems in the merger and acquisition process,analyze the causes,and propose control suggestions,which will bring inspiration to YT Company and other enterprises in their future merger and acquisition activities.Firstly,the first part uses the literature research method to summarize and summarize the research results of domestic and foreign scholars on enterprise mergers and acquisitions.The second part defines the concepts and theoretical basis related to financial risks in enterprise mergers and acquisitions.Secondly,the third part uses the case analysis method to introduce the companies of YT Company and BT Company,and analyzes the motivation,process,and current situation of the merger.The fourth part uses quantitative and qualitative methods to identify the financial risks in various aspects of M&A activities,and the fifth part analyzes the causes of financial risks.Finally,it proposes control suggestions that can be taken when conducting merger and acquisition activities in the future.This article believes that due diligence is crucial in mergers and acquisitions,and significant information is particularly crucial to the results of mergers and acquisitions.We should not blindly optimistic about assumptions and always maintain the principle of prudence.When selecting a third-party evaluation institution,its qualifications should also be evaluated.Secondly,when choosing financing methods,attention should be paid to the capital structure,financing speed,and financing costs of the enterprise,and the use of funds should be planned in advance when making payments.Finally,focus on the integration of business and management systems,as well as cost control,to ensure the normal operation of the enterprise after the merger and acquisition.The innovation of this article lies in the fact that after reading relevant literature,it was found that most of the research cases belong to successful cases of merger and acquisition results,while this study case belongs to failed cases of merger and acquisition results.The sharp contrast between the two studies can serve as a warning for YT Company and other enterprises in future merger and acquisition activities,and thus treat the financial risks of merger and acquisition activities more cautiously.