Research On Financial Risk Control Of Mergers And Acquisitions (M&A)

M&A is an important component of the capital operating activities and is an important means to expend capital. And it is also an effective way to achieve the optimal allocation of resources. Since 90s'of the 20th century, the western developed countries stirred up waves of the fifth round of M&A in the world with the accelerated process of economic globalization. At the same time, M & A activities are surging in the China. However, more than 60% of M&A is failure according to the conclusion of some well-known international research institutes and consulting firms. So we can know that the succession rate of M & A activity is very low. M & A activity is a complex high-risk investment activities, financial activity is at its core. By many failure cases, we can find that the M & A financial risk can not be managed effectively is the main reason leading to mergers and acquisitions failed. The key of the success of M&A activity is to fully understand the financial risks of mergers and acquisitions and to implement risk management effectively. Therefore, this article attempts to study M & A risk-control in order to improve the success rate of M&A.This total is divided into five parts. The first section describes the background and the topics of this article at home and abroad, and obtains on the need of M & A financial risk-control study. The second part is related to the theory of introduction, focused on an overview of corporate mergers and acquisitions, and explained mergers and acquisitions based on the economic point of view of motivation. Then the article describes the COSO risk management framework and analyzes its eight elements, then introduces the M & A risk and its manifestations. Finally, M & A financial risk was defined. Based on this, the acquisition of this article is constructed of financial risk control system diagram. The M & A financial risk is divided into five areas. Then, it bases on risk factors to build M & A financial risk assessment system, then it use of fuzzy comprehensive evaluation to measure the identified financial risk of M & A. The fourth part respectively controls the risk from M & A strategic planning, M & A Pricing, the way of the payment and the risk of post-merger financial integration. Then, it uses the case of the M & A to analysis the financial risk control. Finally, it summaries the result of this research and pointed out shortcomings in the text. As well as it introduces the further study of the contents.