Research on Financial Risk Prevention in Corporate Mergers and Acquisitions

Abstract

Since the beginning of the reform and opening-up, enterprises have been continuously growing and expanding under the impetus of various reform measures. However, internal accumulation alone cannot meet the demands of rapid growth and domestic and international market competition. Corporate mergers and acquisitions, as one of the crucial strategic approaches, have become an effective means for achieving low-cost expansion and sustainable development, providing companies with growth opportunities and market advantages. Nevertheless, along with these benefits come a series of potential financial risks that, if not effectively managed, can lead to severe losses for the enterprise. This research aims to explore the financial risks during the process of corporate mergers and acquisitions and propose corresponding risk prevention strategies.