Financial Risk Analysis and Prevention in E-commerce Platform Mergers and Acquisitions: The Case of Mogujie's Acquisition of Meilishuo

BingYue Lu; YiFan Ding

doi:10.63313/EBM.9081

Authors

BingYue Lu College of Economics and Trade, Foshan University, Foshan 528000, China Author
YiFan Ding College of Economics and Trade, Foshan University, Foshan 528000, China Author

DOI:

https://doi.org/10.63313/EBM.9081

Keywords:

E-commerce Platform, Financial Risk, Mergers and Acquisitions (M&A)

Abstract

At the beginning of the new century, with the advancement of science and technology, the internet economy has flourished. Consequently, numerous e-commerce platforms have emerged and continue to develop. However, the proliferation of platforms intensifies competition. To survive this fierce environment, many e-commerce platforms resort to mergers and acquisitions (M&A) as a strategy for expansion and sustainable development. Yet, M&A is a high-risk economic activity fraught with significant financial risks. Against this backdrop, this paper examines the financial risks associated with e-commerce platform M&A, using the 2016 merger of Mogujie and Meilishuo as a case study. The study first identifies the main types of financial risks likely to arise during e-commerce platform M&A. It then analyzes the specific causes behind these common financial risks and investigates strategies to mitigate and prevent them effectively.

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