Research on Financial Risk Control of Internet Enterprises' Merger and Acquisition

Since the internet plus Plan was put forward, the Internet industry has gradually turned into a blue ocean for investment. Traditional industries are striving to upgrade and transform, and they are pouring into the M&A market of Internet enterprises, and they are convinced that the most effective and direct way to implement the internet plus strategy is to acquire Internet enterprises. Moreover, in the process of M&A, there are many times when all the shares are acquired. However, through a large number of failure cases, it shows that M&A of Internet companies is a long-term investment behavior, and it will inevitably face a lot of failure risk factors. There are many financial activities involved in the M&A process of Internet enterprises, and other risk factors interact with financial risks, so the harmful consequences of financial risks are strong and extensive. If we pay attention to the related financial risks, it will not only help the smooth progress of M&A activities of Internet enterprises, but also help the future development of enterprises. Due to the close attention to the development of Internet enterprise M&A and the exploration of financial risk management, this paper studies the relevant literature of Internet enterprise M&A by domestic and foreign scholars, and based on the theory of financial risk control, analyzes the financial risks encountered by Internet enterprises at home and abroad at this stage and its causes. From the perspective of Internet industry, combined with the characteristics of Internet industry M&A, through the study of financial risk control of 2345 company Hilong M&A, it is found that Hilong made a comprehensive analysis of 2345 company before M&A, and reduced the valuation risk by comparing market method and income method. In M&A, we should plan the financing risk in advance, and solve the dilution risk and payment risk of M&A equity through private placement. After M&A, the integration risk was reduced through comprehensive integration measures, and the financial integration risk of M&A was effectively controlled and prevented, and M&A was successful. Through the case analysis of Hilong software M&A, we can get the following enlightenment: the strategy made by Internet companies before M&A should first conform to their own long-term development, comprehensively and reasonably evaluate the enterprise value before M&A, use the payment method that is most suitable for the enterprise itself, and combine their respective advantages when integrating. Establish an effective information platform to reduce or avoid the financial risks encountered in the process of mergers and acquisitions, improve the information transparency of both parties to mergers and acquisitions, and reduce the financial risks caused by information asymmetry in mergers and acquisitions. It is hoped that the combination of theory and practice can provide useful reference for China Internet enterprises to prevent, avoid and control financial risks in M&A practice.