M&A Integration Of Risk Identification And Assessment

Corporate mergers and acquisitions is an effective form of rapid expansion, it is a big project, involving a lot of content. Due to the impact of corporate nature and purpose, the theoretical system on the M&A risk identification and assessment methods have not yet formed a unified understanding. As a very important part of theoretical system of M&A, the merger integration risk has always been concerned about, but it also in the same state. It is necessary to re-define the systematic integration of acquisitions, mergers and acquisitions to facilitate the integration guide enterprises to avoid risks and improve the quality acquisitions.This paper based on the view point of integration of mergers and acquisitions in the concept of integrated, identification of the risk of M&A integration, the main idea is to link to the whole merger integration among M&A process. To study the acquisition process as a goal to design a new integrated system, this paper argues that M&A integration of risk exists, as the risk of M&A, the difference is that the risk of M&A integration is complex, not simply appear in a specific part of the acquisition, but throughout the entire acquisition process. Discuss the meaning of risk, integration processes, the main risk factors and specific risk factors. On this basis, re-elaboration of merger integration risk assessment. First, discusses the common assessment methods, introduce the basic principles of these methods and steps to identify the limitations of these methods in the application, then made a new assessment method-the evolution of the risk matrix. This improved risk assessment methods are based on the matrix method, retained the risk impact matrix method of risk level, risk probability, the value of such merit order, in the final evaluation, use the characteristics of the individual advantage, get a proportion of the collection, and then apply the clustering method obtained the weight of the mainstream, that is to get the final results of the assessment. This method can reduce the impact of human factors, the final assessment will be more objective, through the introduction of this assessment, in order to be able to bring help to the business merger.