Internal Control Research Of Mergers And Acquisitions Risk

Recent years, the rapid development of global economic integration，wave of mergersand acquisitions have surged.In China, mergers and acquisitions is the important method for company to adjust capitalstructure and enhance competitiveness. But, it is common for M&A failures which is due theinternal control system is not perfect.The objective of internal control system is control the risk which control informationasymmetry, and find out and solve the problems. The internal control system is keep away andcontrol M&A risks which are insure the success of M&A.The article analyzes the theory of internal control and risk in decision-making,implementation and integration. Then, summarize the measure of internal control to reducethe risk of M&A. With study the theory of M&A, this article analyzes the M&A of JizhongEnergy Group. And analyze the problems in M&A of Jizhong Energy Group, especially theintegration problems which focus on human resource integration, financial management andcultural integration.In the end, this article analyzes the measure of these three parts. First,enhance the human resource integration to retain talent. Second, build system of propertymanagement, cash flow control, financial staff management and merging enterprise stockassets to manage finance. At last, enhance the integration of enterprise’s spiritual culture,behavior culture and image culture for culture integration.