China's Mergers And Acquisitions In The Financial Risk Identification And Prevention

M&A means mergers and acquisitions, which can improve enterprises'management efficiency, optimize enterprises'assets disposition, and modernize increased assets. Five-scale M&A once happened in history, and the sixth tide of M&A is engulfing the world. In this tide, China plays an important role. Now China has raised a rating tide of M&A overseas at the beginning of Lenovo Group purchasing IBM's PC service.M&A is a high-risk investment, which can bring enterprises great effects. At the same time, we should catch inherent risks. So it is very urgent and important to research the risks of M&A. This article is precisely based on this, from the elementary theory that M&A embarks, first analyzes M&A financial risk that brings to the enterprise, and then proposes the concrete guard measure and the suggestion in view of various risks.We will discuss these topics in the following chapters: Chapter 1 discusses the reasons why M&A takes place. Firstly, it explains the concept of M&A and reviews the history of western M&A waves. Then it analyzes the motivations of M&A from the point of finance, pointing out that it is the financial motivations that engineer the rapid development of M&A. A lot of cases state that the successful opportunity of M&A is very low. The reasons for the failures mainly lie in the risks of M&A, especially the financial risk, which includes the risk of pricing, financing risk and the risk of financial integration.Chapter 2 probes into the risk of overpayment and the countermeasures in M&A. The risk of pricing refers to that M&A price is too high to excess the target's value. Several factors have caused pricing...