A Research On How To Prevent Financial Risks In M&A Of Listed Companies Based On Our Analysis Of The Reasons Of M&A

In recent years, the global M&A trade sinks into the depressing state, but the mergeramong Chinese enterprises is still frequent. However, our country's distinctive environmenthas put forward all sorts of challenges for M&A. Study according to McKinsey: the successrate of Chinese enterprise M&A is very low,less than 30%. This causes various circles ofsociety to extensively concern on risk in M&A in china. M&A is made up of many kinds ofactivities;the financial activity is its core. This text attempts to research financial risk inM&A for improving the success rate of M&A in china. For this reason, this text studiesthrough five parts:The first part introduces the global wave of M&A and our country's. We found that thereis a high failure rate of the current merger, so it is particularly important to study the causes ofthe financial risk of M&A. Through the research on the causes of the financial risk of M&A,and then find measures to prevent it will be the ultimate goal here.Part II focuses on the theoretical basis. Firstly, simply introduces the study on the causesof M&A and make my own views on it .Make a classification for the dynamics of M&A fromthe financial dynamics and strategic dynamics, thus leads to two effects of M&A. Sincedifferent dynamics will be lead to different effects, so it is important to clear the mergerdynamics, accordingly to avoid the financial risk of M&A. This is a major viewpoint toclarify and also an innovation. Of course, the rich theoretical foundation will enable theargument of this part more clear and convincing.Part III introduces the concept of financial risk of M&A. There are two main views:finance activities risk theory and financing activities risk theory. By comparing the two views,I think: the definition should be read in combination with the financial meaning and the natureof risk. Then make my views of it from the nature of M&A and the results of financial risk ofmergers and acquisitions. That thus can be said to be a research and innovation point.Part IV introduces a case, an evidence part of the article. The case makes the theory partof the whole article integrated lively, and makes the theory more imaging and vivid.Part V offers the suggestion of financial risk in M&A mainly. I think the so-called evadingshould prior to the merger. The article explains a two-stage measure to prevent financial riskof M&A and some specific practices. This is an important expression of the application valueof the entire article.