Panva Mergers And Acquisitions In The River Project Risk Management

Since it opened the urban Chinese gas market has become much more competitive. Expansion has become the main way to develop. Gas enterprises are increasingly concerned about how to minimize risks associated with an M&A strategy, from social and government point of view.The"Zhongjiang Gas M&A project Company"from by Panva Gas Holdings Limited, will demonstrate the necessity for research on M&A risk management. Combining theory with practice, this thesis will utilize the methods, procedures and the tools, which are used in M&A risk study, via the Zhongjiang project. Moreover, six processes of project risk management will also be used to analyze the Zhongjiang case, including risk management planning, risk identification, risk assessment (qualitative/quantitative) risk response, risk monitoring & control. In the risk planning stage, the analysis deals with target selection,risk scheme design, project organization plans and responsibilities division. In the risk identification stage, the M&A process are analyzed on the basis of identification, with the help of the SWOT tool and flow charts. As a result we found that the main risk to be the financial risk. After analysis of the feasibility study dates from the NPV & IRR, especially through the research of susceptive and probability of IRR, we confirm the probabilities of financial risk. We then we set up a risk monitoring & control system to avoid these risks, and finally make the risk assessment.To quote the research the Zhongjiang project ,"I will not only get a feasible method and rich experience of M&A risk in gas industry,but I will also establish a risk management mode of gas investment, which must be valuable and significant for my future work in both theoretical and practical grounds".