Study On The Mergers And Acquisitions Risk Of Listed Companies

With rapid economic development, mergers and acquisitions have become the main manner for developing enterprise expansion, and an increasing number of enterprises are willing to choose this way. However, many corporate mergers and acquisitions have tended to ignore the existence of high risk. As a prominent representative of modern enterprises, listed companies have larger scale and amount. It has become more and more complex. So, higher investment risk of mergers and acquisitions has been becoming a serious problem not to be ignored for the list companies. Many listed companies carried out the acquisitions blindly, which did not comply with the rules of the market operation, coupled with the external policy changes and the existence of various risks for the acquisitions and integration. So, look at the success rate of mergers and acquisitions, we came to a disturbing conclusion:over60%in the merger ended up in failure, the success rate of enterprise value and synergies through the merger and acquisition activity was relatively low. Many merger and acquisition theory concerned how to make the value maximization under the condition of certain risks. As a matter of fact, it is necessary how to control the risks on condition that enterprise value maximizes. Merger and acquisition success of listed company, is not only related to the company’s development, but also affect the equity investors. Therefore, mergers and acquisitions risk analysis of listed companies is of extremely important significance.Based on the theory of merger and acquisition, theory of merger and acquisition risk control, domestic and international research, the article conducted mergers and acquisitions risk analysis. Firstly, analyze the situation and characteristics of Chinese listed company mergers and acquisitions. During the risk identification stage, adopted risk decomposition method to make the qualitative analysis for the types of merger and acquisition investment risks, to identify the factors from different stages of merger and acquisition investment risk, at the same time, analyzed the performance and reason of merger and acquisition risk. At the stage of risk analysis, conducted the early, middle, late specific analysis of the mergers and acquisitions investment risks. Combined the analytic hierarchy process and fuzzy evaluation to evaluate the risks of merger and acquisition investment, and then came to the overall level risk of the merger and acquisition project with the explained case. Finally, on this basis, make recommendations for prevention of the risks of mergers and acquisitions investment. The article provided a strong operational and quantitative method for the listed companies, and will has some reference value.