Horizontal Mergers In China's Risk Prevention Study

Enterprise's merger is prolonged, with deep economic motive and driving force thereafter, and such reasons as politics, society, etc.. With the further development of social economy, the merger of the new economic and traditional industry has become the irresistible trends. For the enterprises of our country, it is imperative to advance merge between them on a large scale, with the horizontal merger and recombination as the mainstream.Horizontal merger is the effective method to realize the developing strategy which aims at the rapid concentration of capital and large-scale of production. Through the rational and effective horizontal merger, the factor of production flows rationally, which produces the benefits of the scale economy, forms the key competitive power, and promotes the fast development of the enterprises.The numerous positive research both at home and abroad indicate, that there are unknown risks during enterprise's horizontal merger, which causes great uncertainty through the process and the ending of the merger. If the risks are not controlled firmly or dealt with well, the horizontal M&A will fail and cause the enormous economic losses to he enterprise. In order to improve the performance level of horizontal merger, to reduce the operation risk, to promote the industrial structure adjustment, and finally to allocating resources optimally, it is valued greatly in practice to launch the research of enterprise's horizontal merger in the risk field thoroughly, and to propose the precautionary measures on enterprise'shorizontal merger risk.Based on the analytical method, and draws lessons from the merger theory, the analytical method and empirical analytical method of multi-disciplinary, the paper launches an empirical research on the main risk faced by the enterprises of our country which are developing horizontal merger, summarizes the profound reason of the merger risks, and probes into the risk prevention tactics. All the work gives some beneficial exploration for the enterprises of our country carried on the horizontal merger.