Research On Financial Risks In Merger And Acquisition Of Enterprises

With the increasing globalization of economic development, business development territory is extended from the region to the world. Globalization is already a national consensus for enterprise development, which makes the region in which both companies have faced fierce competition from other area businesses, enterprises want to achieve better development, they must expand their scale and improve competitiveness to capture more market share. As enterprises take their own independent path of development requires a great human, financial and material resources and a long time, and if the same as before only on their own, or the accumulation of technological innovation to achieve development strategies against the competition and rapid development opportunities will be lost The loss of competitive advantage. All the world's largest business development and growth trajectory, we can see that most of them go the same way, that is, mergers and acquisitions, puting other potential corporate income limitless as their own. Mergers and Acquisitions has become the basic way for enterprises to grow, in the fast growing Chinese companies, constantly engaged in social and economic evolution, in order to obtain better development began in earnest Chinese enterprises are also mergers and acquisitions just a few decades has greatly development, the number and size of mergers and acquisitions are growing. However, the success rate of mergers and acquisitions is relatively low, a large number of enterprises in order to expand the scale of mergers and acquisitions although blind eye to obtain a temporary effect, but faces a huge risk, if mishandled can lead to failure. In the entire acquisition process, the company's financial activities have been run through them, and has been associated with corporate management and the existence of which there appears to be wrong once will cause the company's financial difficulties caused by business dilemma. Therefore, the mergers and acquisitions financial risk has become the top priority of enterprises dealing with various risks, and have a significant impact in the success of mergers and acquisitions. In addition, the economic and social environment in transition and the special background of the Government made with the distinctive characteristics of mergers and acquisitions, Hisense Kelon acquisition as a merger case in the context of the era has its own special background, more and more mergers and acquisitions are also a microcosm in China, but the deal involves the two companies have their own unique background, in particular financial characteristics is revealed. The number of mergers and acquisitions activity assessment before the potential risks of buried, hidden in the acquisition process of business risk, when the merger integration highlights the integration of risk, constitute the entire financial risk, and throughout the business activities. By hisense acquired kelon the typical case of mergers and acquisitions, before and after mergers and acquisitions in the financial risk, financial risk for the analysis of mergers and acquisitions provide a reference to help make companies recognize the importance of financial risk in mergers and acquisitions to promote enterprises to adopt the appropriate measures to better prevent financial risks and realize the synergies and improve the performance of mergers and acquisitions to increase the success rate of mergers and acquisitions, domestic enterprises in full swing on the occasion of the launching of its financial risk has a major significance.The first chapter introduces the M&A background, significance and approach to the study; the second chapter makes a review of financial risk on the domestic and international M&A research status and the achieved results, put forward own views and the direction of research; the third chapter highlights on M&A and financial risks which are described, focusing on describing the type of financial risk, cause and prevention; the fourth chapter is a part of case, which respectively on the target enterprise value appraisal, the financing ways of M&A process, after the merger of financial integration make detailed analysis, and research the risk management of enterprise adopt measures; the fifth chapter analyses the result of the case and give own evaluation, in the final point out that the case for China's household electrical appliance industry M&A enlightenment.The main contribution of this article is through a combination of theory and case studies to analyze the acquisition of financial risks faced by different stages, to focus on a number of measures to guard against financial risk, I hope China's enterprises in the acquisition of financial risk cause the attention of financial risk, and take reasonable measures to reduce the risk of the occurrence to increase the success rate of mergers and acquisitions. Due to the limitations of own knowledge and the limitations of corporate financial data collection for its financial risk analysis make it not perfect and thorough, proposed measures to prevent financial risks to be the test of time, it is the inadequacies of this article.