Study Of Coal Enterprise M&a Risk Identification And Prevention

In the background of the new economic environment and the promoting of the national coal industry policies, mergers and acquisitions(M&A) is an effective means of the corporation's expanding, and it has got a lot of favor of more and more coal companies. However, the practice has proved that M&A is a complicated systematic project. There are tremendous risks in the process of the M&A. The correct method of risk identification and risk prevention is the key to the success of M&A.In this paper, I used the system factors analysis method and risk early-warning method, combining coal enterprise features, coal enterprise M&A status, and reasons of coal enterprises M&A risk to identify the general risk in the process of coal enterprises M&A from the perspective of M&A company. Then, I constructed the coal enterprise M&A risk early warning system based on the identification results, and gave some risk prevention measures. It is follows:Firstly, I identified 7 kinds of general M&A risk which occur in the process of coal enterprise M&A using Delphi method from the perspective of M&A company. They are: industry risk, institution risk, integration risks, financial risks, market risks, enterprise ability risk and the quality of information risk. The biggest risk which the coal industry needs to face is the industry risk; the second-largest M&A risk is institution risk; integration risk and financial risk also need to focus to prevent.Secondly, I analyzed the root of every kind of risks and identified 18 kinds of risk factors in the process of coal enterprise M&A. And then using the DEMATEL analysis method analyzed the relationship of risk factors and influence on the coal corporate M&A. From these analyses, I discovered that industry relating degree, national industrial policy, M&A price, institutional factors, role of government, legal environment, capital markets, M&A enterprise strength, human resource allocation, differences of enterprise cultural and ability of target enterprise are the main risk factors. The industry relating degree has the greatest impact on the coal enterprise M&A; the national industrial policy has the greatest impact on other factors; the price of the M&A is the key to the success of coal enterprise M&A.At last, based on the identification results of coal enterprises M&A risk, I constructed the coal enterprise M&A risk early warning system, and introduced several prevention measures for main micro-risks and policy advices for main macro-risks.