Author(s)

Huiran Hu ¹

Affiliation(s)

¹ Jiangzhong Pharmaceutical Group Co., Ltd, Nanchang, Jiangxi, 330000, China

Corresponding Author

Huiran Hu

ABSTRACT

This study addresses the complex financial risks and corresponding management strategies associated with enterprise mergers and acquisitions (M&As), focusing on the high-profile case of Tencent's acquisition of Supercell. With a mounting emphasis on strategic expansion through M&As, understanding the inherent financial risks and implementing effective management strategies is pivotal. This research provides a comprehensive analysis of financial risks within the M&A context, supplemented by a critical review of existing financial risk assessment models. An extensive overview of the rapidly evolving M&A landscape sets the backdrop for evaluating the success metrics of such corporate ventures. The Tencent-Supercell merger serves as a case study to exemplify the practical application of theoretical insights. It evaluates Tencent's acquisition strategy and Supercell's financial valuation prior to the merger, providing a real-world understanding of M&A dynamics. Through this case, the study identifies and explores various risk mitigation tactics, along with the formulation of post-merger integration mechanisms that focus on financial synergies and risk containment. The findings highlight that proactive risk identification, coupled with meticulously tailored risk management frameworks, is crucial in optimizing M&A outcomes. This research contributes to M&A scholarship by illuminating the nuanced interplay between financial risk management and strategic maneuvering in complex corporate amalgamations.

KEYWORDS

Financial Risk Management; Mergers and Acquisitions; Corporate Strategy; Tencent-Supercell Merger; Post-Merger Integration; Risk Assessment Models

CITE THIS PAPER

Huiran Hu, Financial Risks and Management Strategies in Enterprise Mergers and Acquisitions: The Case of Tencent's Acquisition of Supercell. Financial Engineering and Risk Management (2025) Vol. 8: 24-33. DOI: http://dx.doi.org/10.23977/ferm.2025.080104.

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