C. Payment Risk One of the key link

C. Payment Risk One of the key links in M&A activity is payment. Inappropriate payment options increase the likelihood of payment risk. In general, the mainstream payment method used by companies in mergers and acquisitions activities is a combination of cash, stocks, and mixed payments. The use of cash payment is simple and easy to reduce the time cost of the target companies. But paying with your own money is a double-edged sword. The excessive use of cash payments when the financial chain of enterprises is strained will exacerbate the financial strain. In addition, the merger and acquisition parties choose to use equity payments, which will increase the number of shares issued on the market and affect the original capital composition of the company, thereby diluting the original shareholders' expected returns.