Analysis of merger risk of new technology enterprise 2018 Analysis of merger risk of new technology enterprise

Abstract Corporate mergers and acquisitions are a way to achieve business expansion and growth.Many companies have achieved speeding development and impressive performance through mergers and acquisitions, but according to relevant statistical data analysis, successful mergers and acquisitions cases are rare.Because corporate mergers and acquisitions are a high-risk business activity, once the control is slightly biased, it will lead to failure.Since financial activities run through the entire M&A process, financial risks caused by financial activities have become an important factor in the success of mergers and acquisitions. It is a risk that must be fully considered in the well-buying activities.

The risk of merger and acquisition of technology enterprises. Financial risk before mergers and acquisition Financial risk in mergers and acquisition Financial risk after merger and acquisition

Financial risk before an enterprise merger 1 Financial risk before mergers and acquisitions Investment risk is the main type of pre-merger financial risk. It means that the company isThe risk arising from the timing of mergers and acquisitions and the improper choice of target companies in the purchase investment process.

Financial risks in mergers and acquisitions 2

Financial risks in mergers and acquisitions 1.The risk of unclear acquisition motivation. 2.Blind confidence exaggerates the risk of self-acquisition.

CONTENTS 1 Information asymmetry risk 2 Financial risks

In the process of mergers and acquisitions, financial risks are mainly represented by financing risks and expenses.Risk financing risk and payment risk are caused by unreasonable pricing.so IWe classify financial risks in mergers and acquisitions into three types of pricing risk financing risks and payment risks.

Financial risk after merger and acquisition 3

CONTENT The relationship between the merged company and the original customer deteriorated, resulting in operational risks. 1 2 After the merger and acquisition, the company increased operating costs and formed operational risks.

After mergers and acquisitions, new companies are faced with problems such as the convergence of management systems and the expansion of operating costs, and there are operational management risks.Management and management risk refers to the change in profitability caused by the uncertainties of the company's operating conditions after the merger and acquisition.

Conclusion 1 Precautionary Measures for Pre-M&A Equity Risk Select the appropriate M&A target company and timing. Enterprises should conduct an objective analysis based on scientific data and fully consider the company’s external environment and internal resources so as to select a suitable M&A industry.After the merger and acquisition industry is determined, the timing of mergers and acquisitions will be selected in combination with the actual situation, thereby minimizing the risk of M&A industry and timing choices.

Conclusion 2 Prevention of Financial Risks in Mergers and Acquisitions Prevention of Pricing Risks Collecting and collating information is the main preventive measure for pricing risk.The information asymmetry between M&A parties is the root cause of the risk assessment of target companies. Therefore, M&A companies should avoid hostile takeovers and conduct detailed review and evaluation of target companies before M&As.Examine the target company and conduct a comprehensive analysis of the target company's industrial environment, financial status and operating capabilities

Conclusion 3 Prevention of integration risks after mergers and acquisitions Strengthen internal management of enterprises and improve the internal control system of mergers and acquisitions After the company's well-purchasing, with the expansion of the scale of production and operation, competition will be more intense.Especially for transnational mergers and acquisitions, mergers and acquisitions companies face not only the domestic market but also the international market.Therefore, strengthening the internal management of enterprises, perfecting the internal control system of mergers and acquisitions, and effectively realizing the internal control of all aspects of the enterprise, is one of the important contents of strengthening the integration of well-being companies.

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