M & A Synergy Metrics And Their Risk Research

The computation of synergy and research of risk is a key link in the M&A. The study on which is to reflect the internal value of M&A much better. There into it, the computation of synergy plays a decisive role in judging feasibility and is one of the important bases in object enterprise pricing. At the same time, considering the uncertainty of synergy, we can't ignore the research of risk which includes appraise and control.After the analysis of the contributing factors of synergy, the author adopts an index system, as a preparation for evaluation. On the basis of former research, from the angel of quantitative analysis, an evaluating model based on ANN is put forward to estimate the value of synergy. This model gives a new way to evaluating synergy.Considering the relationship between synergy and risk, this paper explores further into synergy risk. The risk is departed into system risk and non- systematic risk to be discussed separately. And a synergy risk-estimate model is established. Besides, the author tries to give some suggestions to improve the efficiency of M&A. On the one hand, control methods for non-systematic risk are discussed from the angel of qualitative analysis; on the other hand, particularly, this paper puts forward a new integrated measurement method for object enterprises evaluation, which is useful to make merger decision more scientific.