M & A Financial Risk And Prevention Research

M&A, the abbreviation of merger and acquisition, refers to a kind of investment action, through which one enterprise can control another one by means of obtaining part or whole property right of the latter. As a result of the rapid development of market economy and effective measure of enterprises' management, it has had a history of over one hundred years in western developed countries, which have seen four times M&A tidal wave. Until now the tidal wave still exists and the fifth has begun. In this condition, our country has started to notice it. With the reformation and opening embedded and market economy based, M&A has become a brighter topic in our socialistic market economy. It was proved by M&A practice in our country that M&A is not only an important measure and positive means to realize the restructuring of property right and optimize the resource reallocation, but also the necessary choice in the reformation of state enterprises.However, for a kind of investment action, we should see its risk while we see its benefit. How many good cases are on earth there in all of the M&A deals by now? The result from the demonstration research indicates the rate of failure in M&A is very high. It can create the advantage for enterprises and bring large risk. So every enterprise in M&A gives its attention to such a problem, which is how to control the risk and enlarge the probability of success of M&A. The research about risk and risk control has become especially important. Just based on this point, the thesis begins with the basic theory of M&A, and analyzes the finance risk of M&A, then advances the measures and suggestions in detail to control the risk.The paper consists of three parts:The first part is the pandect. This part introduces the basic questions of M&A. Above all, it defines the conception of M&A based on the international conception and our country's actual condition and the development in the future, and reviews and prospects the enterprise M&A in the world, then explains the necessity to research M&A and its finance risk and its control.The second part analyzes the finance risk in M&A. Based on the definition ofthe finance risk in M&A, this part classifies it in deferent point of view, and enters the main body of this part and emphasis in this thesis, which is the introduction of the content of the finance risk in M&A, including the risk of the aim enterprise's value evaluation, the financing risk and the finance risk in the integration period.The last part introduces the basic knowledge about risk control, the five principles and the measures and suggestions to control the finance risk in M&A, which is the second of the emphasis in the thesis , in order to be helpful to the healthy development of the enterprise M&A in our country.