Research For Financial Risk Control In Corporate Mergers And Acquisitions Of Sete Group

At the end of2010, there are more than ten Chinese education institutions listed in the United States Stock, with the investment capital favour of Chinese education institutions, in order to expand business and increase market influence, to achieve scale economic effectiveness, to allocate their resources effectively, more and more Chinese education institutions implement a strategy of mergers and acquisitions.As a large-scale private education institution in the south of China, in order to improve profitability and market influence and to achieve rapid distribution as a regional strategy, Site Group has also implemented a strategy of mergers and acquisitions. In this article we describe the development trends of the education industry and the characteristics of mergers and acquisitions. We discuss the theory of mergers and acquisitions, motivation, financial risk, financial risk classification, and financial risk prevention. Related to the motivation behind Site Group’s acquisition, we present our research on risk distribution of the Site Group in the mergers and acquisitions decision period, implementation period and operations period, on analysing the problem in pricing risk, financing risk, payment risk and financial integration risk of acquisitions by Site Group, on figuring out major problem in the implementation of all aspects of mergers and acquisitions. Finally, we present our directions for solving the financial risk arising in the acquisitions by Site Group, for establishing a financial risk control system for Site Group’s acquisition, for integrating and utilising financial management, for integrating comprehensive and systematic financial risk solutions for Site Group’s acquisition, and ultimately for establishing and designing management systems and a risk control programme for Site Group’s mergers and acquisitions, and offer our advice on programme implementation and control, to reduce financial risk for Site Group’s acquisitions as much as possible, to confine financial risk to a controllable range.