Recognizing And Taking Precautions Against Risks During M&A

How to meet the fifth tide of M&A and raise the rate of successful M&A is becoming a more and more important issue. Fundamentally, the reason of so much failures of M&A is that the corporations lack sense of risks. In china, the research on M&A has just started, and most experts'research focus on the motivation and effects of M&A while fewer ones research on the recognizing and taking precautions during M&A. This thesis will focus on the recognizing and taking precautions during M&A,points out a procedure chart on corporate A&M, in order to offer suggestion to the M&A of corporations.Chapter 2 is mainly about the theory foundation of M&A. Chapter 3 tells us how to recognize the risks of M&A , basing on quantitative and qualitative analysis of M&A. Chapter 4 points out ways of how to take precautions against M&A. At last, the author gives us a process graph of M&A , basing on the recognizing and taking precautions system of risks, including the choosing of the objective corporation, negotiation, capital seeking, faculty arragement, corporate culture arragement , and so on.The article focus on the whole plan on the corporate risks management during the process of A&M, including two parts: the technique of recognizing the risks of A&M and the technique of taking precautions against the risks of A&M. The most difficult issues are as followed: the technique of recognizing the risks of A&M, how to make the choices of the objective corporation and the cultural mode after A&M.