Research On Risk Identification And Management Of Adjustment Mechanism In M&A Based On XF Company

In recent years,with the support of the national macro policy,the merger and acquisition of enterprises has become increasingly active.Many enterprises have achieved rapid development through the implementation of M&A strategy,but there are also a large number of failed M&A bet cases.In view of this,considering the relatively complicated and lengthy process of merger and acquisition betting,risks may appear in every link of merger and acquisition betting,so it is necessary to study the risk identification and management in the whole process of merger and acquisition betting.From the perspective of the acquiring party,this paper adopts the case study method,and selects the successful merger of XF Company with Xing Rui Silicon Material,which has experienced multiple failure of counterbet,as the research object,and deeply analyzes the risk points and risk management measures in the process of counterbet of XF Company’s merger and acquisition,hoping to provide useful reference for other enterprises.Firstly,the research background of this paper is introduced,and then the research purpose,significance and methods of this paper are explained.This paper briefly expounds the related concepts of M&A bet,VAR and risk management,and combs the domestic and foreign researches on the nature of M&A bet,risk identification and analysis of M&A bet and risk management of M&A bet.Based on the previous researches,the theoretical analysis framework of this paper is constructed.Then,it briefly introduces the two sides of the transaction,the process of merger and acquisition and the motivation.On the basis of theory,combined with the specific situation of the case,taking the risk identification of the merger bet as the entry point,using the segmentation identification method,the risk points in the merger bet of XF Company are comprehensively analyzed in stages.Preparation stage of M&A bet: due diligence risk,market risk and policy risk;The development stage of M&A bet:valuation and pricing risk and target setting risk;Merger and acquisition bet execution stage: enterprise integration risk and legal risk.Secondly,in view of the complexity and comprehensiveness of M&A bet risks,based on the perspective of hindsight,VAR model is used to measure the overall risk of M&A bet,GARCH(1,1)model is constructed with Eviews software,VAR value is calculated through stock price fluctuations,and the overall risk of M&A bet is determined by combining qualitative and quantitative methods.Finally,according to the timing relationship,the risk management measures in the process of merger and acquisition betting of XF Company are analyzed in stages.Combined with other classic cases,the risk management process is summarized and built.Based on the risk management principles,a universal risk management framework is built.Specific strategies include improving the quality of due diligence work,establishing economic research departments,strengthening environmental management,carefully choosing earnings growth and discount rates,strengthening the negotiation of performance compensation clauses,and repeating the game model to set performance targets.Then it summarizes the research content of the full text and looks forward to the risk identification and management of merger and acquisition betting in the future.