Analysis Of Risks Of Enterprise Merger & Acquisition And Its Preventing

Enterprise Merger and Acquisition (M&A) is a hot topic in modern enterprises, and it is a normal behavior of the enterprises for the changes of the market. Since 1897, five big enterprise M&A waves launched in major capitalist countries and international M&A became more violent in 21st century.We may find the following idea from the research of the domestic and international real cases about M&A in this thesis. The percentage of the failing cases is higher than successful ones. There is the big risk in M&A. Although domestic and international scholars have done many researches in different aspects in M&A, the systemic research for M&A risk is very weak any way. This thesis focuses on the M&A risk and risk prevention based on the principle theory of the M&A. We may find ten sort risks of M&A in the research, Pre-M&A risks:(1) policy risks;(2) system risks;(3) legal risks;(4) industrial risks. Risks happened during M&A:(1) principal-agency risks;(2) information asymmetry risks;(3) financial risks;(4) hostile takeover risks. Post-M&A risks:(1) consolidation risks;(2) credit risksAnd we may find the solutions for preventing this ten M&A risks from the angle the management view in this thesis as well. The solutions are the followings: analysis for the decision of M&A strategy before M&A; prudent evaluation for plan before M&A; risk prevention for the negotiation and contract signing during M&A; pay attention to consolidation and harmony after M&A.