The Research Of The Management To Finance Risk In Enterprise M&A

We explore the three kinds of financial risk, which includes the target enterprise evaluation risk, financing risk and payment risk, in the process of enterprise Merger & Acquisition. Financing and payment have a close relation with each other, we merge the two parts into one parts .We put forward some measurements on the basis of analyzing and researching their manifestations and root causes.In the management of the target enterprise evaluation risk, we research the meanings, contents and characters of the target enterprise evaluation, put forward some measurements in order to reduce the risks of the target enterprise evaluation and propose that the aim of the target enterprise evaluation is to provide the basis of reference and standard for the final price of Merger & Acquisition. The final price of Merger & Acquisition is between the self-governed marker value which is the lowest price of the target enterprise and the value of Merger & Acquisition which is the highest price of the target enterprise. We quantize the two parts .and make the determination of the highest price of the target enterprise more accurate.In the management of payment & financing risks, we put forward some measurements on the basis of analyzing the tool of payment and the means of financing. After researching the manifestations and root causes of payment & financing risks, we mainly introduce the optional pattern of Merger & Acquisition. The west option theory is introduced in the management of financial risk. We propose that optional pattern of Merger & Acquisition is able to coordinate the interest clash of the opposing forces, control the financial risk and achieve the win-win situation of the opposing forces.We adopt the method of both quantitative and qualitative studies, provide a great number of cases to make the argumentation more strongly, analyze the financial risks and put forward the measurements through a concrete case in the section four.After analyzing of above sections, we point out main financial risks and their resource in M&A, especially execute research on the two important phases of target enterprise evaluation and Payment & Financing, give practical measurements for risks control and management and achieve the academic exploring of the management to financial risks in enterprise Merger & Acquisition. We hope to reduce the financial risk in enterprise M&A and increase success in the rate of enterprise Merger & Acquisition.