Research On Risks Of State-owned Enterprise Merger & Acquisition

As an effective way for business expansion, merger and acquisition (M&A )have gained increasing popularity among enterprises. The Time-Efficiency advantage featured by M&A has made the enterprises change their original idea that further development has to rely on primitive self-accumulation. However, practice has proved that enterprise M&A are complex systematical projects and often give rise to great risks. A great number of merged and acquired enterprises haven't fully realized the fact and failed to take preventive actions and effective controls over the risks. As a result, the conducts of significant the theoretic and realistic meaning to study the risks of enterprise merger and acquisition and establish systematical and normative risks-evasion mechanism in order to achieve the effectiveness and safeness of State-owned enterprise M&A in our country.The paper, viewing from the angle of merged and acquired enterprises and proceeding from the concepts and theories of M&A risks, elaborates in the first place the current situation of State-owned enterprise M&A risks in our country by combing theoretical research and practice research, and that indicates our country's state-owned enterprise mainly have system risk and the non- system risk during the merged and acquired activity. Meanwhile, it goes deeply into the cause of State-owned enterprise M&A risks in our country. Secondly, by the qualitative analysis primarily, discusses the risk evaluation method during the merged and acquired activity from the qualitative analysis and the quantitative analysis aspects. Thirdly, it gives systematically and normatively applied analysis to the risk prevention and control of State-owned enterprise merger and acquisition in our country according to risk management theories and methods, which finally leads to the presentation of the risk prevention and control measures based on the all merger and acquisition stages.