The financial risks of corporate mergers and acquisitions are as follows: 1. Assessment pricing risk, that is, the possibility of losses in the financial status of the acquiring company due to improper assessment of the value of the target company during the merger and acquisition process.
2. Payment risk, that is, the possibility that the acquiring company will suffer losses due to improper selection of payment methods during the merger and acquisition process.
3. M&A fund management risks. M&A funds can come from own funds, loans from banks and other financial institutions, issuance of bonds and M&A funds, etc. Whether the funds can be successfully raised and managed well determines whether the M&A can proceed smoothly.
4. Financial risks during the integration period. After the company implements the merger and acquisition, the company's production and operation activities enter the integration period. During the integration period, the financial risks of the merged company are diverse, such as unreasonable capital structure, single financing channel, etc. Risks
The formation of financial risk is the result of the combined action of various factors. Therefore, prevention and control must be carried out from all aspects during the integration period in order to reduce the occurrence of financial risks.
Warm reminder: The above explanation is for reference only.
Response time: 2021-09-01. For the latest business changes, please refer to the official website of Ping An Bank.