M & A Risk Study

It is well known that M&A of enterprise, as a growing style of enterprise, contains great risk when it brings opportunity and profit to enterprise. The risks in the corporate merger and acquisition refer to the possibilities that the corporate goal can not be reached as planned, and the negative impact to the normal business operation of the corporate. The failure rate of M&A cases is even higher than 50%, which makes the enterprises enormous loss. M&A is not all-powerful, it also has its own bug, with suffering a great deal of risk.Firstly, this article reviews the current research on the risk of M&A, and summarizes the theories of M&A. On the basis of this, research on the reasons and the influence factors of the risk in M&A, as well as the types of the risk in M&A. It also gives some advices about avoiding the risks in the corporate merger and acquisition. And we raise some solutions for preventing this MBA risks from the management view in this thesis as well.As follows: prudent evaluation for plan before M&A; risk prevention for the negotiation and contract signing during M&A; pay attention to consolidation and harmony after M&A. Therefore, it is very important for the decision makers to solve the measurement, management and recognition of the M&A risk. This article has conducted a comprehensive research from the fundamental theories to the recognition, measurement and safeguard aspects of the risk in M&A.Keeping the risks in the corporate merger and acquisition away, actually involves many aspects. This paper introduces some successful experience on how to avoid the risks of merger and acquisition based on two corporate cases, thus educes some effective measures for the reference of all corporate for later suggestions. It is expected that this article can provide the decision makers with reference, and make the M&A reach the anticipated effects.This paper also intends to provide a consultation on how to identify and avoid the risks of merger and acquisition so as to promote the success of the corporate merger and acquisition and to help to develop the whole merger activities and after the process of merger and acquisition.