Research On Control Of Financial Risks In M&A

Along with the development of market economy of our country, the Mergers and Acquisitions (M&A) becomes important means of extending the market share of business enterprise, optimizing allocation of the resources of business enterprise, and declining the expanding cost. The financial risks, which pierces throughout the M&A process, is the key factor resulting in the success or failure of M&A. Studying the financial risks of enterprise merger is greatly significant to the business enterprise and economy development of our country.This paper is divided into four parts; the first part is chapter1, a textual introduction. The second part is chapter2, the part carries on definition and summary to definition type and procedure of M&A, and quote from Synergy Theory by providing theory foundation for article. The third part is chapter3and chapter4, starting from the background of the A company annexed B company to analyze, then accompanied with study on the target enterprise value appraisal, the financing ways of M&A Process, before the analysis of details of financial integration make of merger, and research of risk management and countermeasures of enterprise. The fourth part is chapter5, textual conclusion and apocalypse.This Paper combines the theoretical research with the case study method in the hope of providing beneficial reference for the Chinese M&A activities.