The Risk And Prevention Of China Small And Medium-Sized Enterprises

The article applies literature date,example,inductive and inference methods,analysis method and comparative analysis to discuss the status quo and risk of M&A of our Small and Medium-sized enterprises.The research shows that the scale and scope of our Small and Medium-sized enterprises' M&A would expand in the next years.And M&A will be the fast-growing way of our SMEs.At present,the M&A risks our SMEs faced include four aspects such as the strategic risk,the financial risk,the culture integration risk and the market risk.First,the strategic risks include whether the SMEs make the decisions of M&A,how to choose the way of M&A,target enterprises,the time table of M&A and so on.The second,the financial risk is the huge risk of M&A of our SMEs.It includes the single channels of financing,the backward of financial management leaded by family-style management model of our SMEs,over-indebtedness and financial concealed and capital flight caused by the loss of credibility.The third,the cultural integration risk includes the choice of target enterprises,decision-making mechanisms and the system of personnel selection.The clash of cultures due to the lack of the standardized process to integration,the lack of full-time staffs to integrate the enterprises,the lack of high-level manager' support, information asymmetry and the lack of coordination mechanism.The forth, the market risk includes the shortage of adequate market research,the weak linkage of business between the M&A enterprise and target enterprise.The enterprises can't achieve the incomes in short time and it's difficult to come true the rapid integration.As the result,the manager should strengthen in four aspects to conduct comprehensive researches and prudent analysis and make scientific decisions.First of all,the managers should be more careful to make the choice of target enterprises.It requests careful researches about the background of target enterprises,the intensions of integration,market environment and financial situation.The second,the manager should coordinate the development strategy and financial system and establish financial system considered by the enterprise development strategy.The third,we should make the manager as the core to integrate culture.The SMEs try there best to choose compatible culture target enterprises,built full-time integration team and establish effective communication mechanism.Finally,we should fast market restructuring and the integration both of management teams.Our SMEs should make more efforts to expand the scale and win the domestic and international market.From the historical view,M&A is the best way to achieve rapid expansion to enterprises.In the few years,the M&A environment in our country will be better.The market will be more standardized.And the government will strengthen more policy support for SME and improve the relevant legislation.Therefore,the mergers and acquisitions of SME would have good prospects in the future.