The Research On The Process-based Acquisition Internal Control

With the continuous improvement and complete of China’s economy, mergers andacquisitions have become an important choice for the development and growth of manyenterprises, especially listed company. Through the implementation of mergers andacquisitions, companies can rebuild their own capital, open up new market space,achieve an access to core technologies, reduce marketing costs and other related purposes.Companies try through mergers and acquisitions to achieve their own strategic goals, atthe same time mergers and acquisitions potential problems have gradually surfaced. Inpractice, most mergers and acquisitions ultimately failed, and the factors that led to thefailure of mergers and acquisitions are increasingly attracted people’s attention.In analyzing the causes of failed merger, the author takes the acquisition of potentialrisk factors into account. because of neglect in the merger potential risks and no earlyprevention and control, a lot of problems appear when the post-integration becomeunable to solve, which ultimately lead to the consequences of mergers and acquisitionsfailure. If we can make the appropriate risk identification and control in every aspect ofmergers and acquisitions, many problems can be nipped in the bud, so that theacquisition process has become easy and smooth. This article is starting from the M&Aprocess, and the entire M&A activity is divided by the corresponding processes, then foreach process to identify potential risks and analysis, and finally to develop appropriateinternal control measures and methods for the M&A process risks, so as to successfulacquisitions necessary to achieve protection.In practice, internal controls in mergers and acquisitions did not cause most of theattention of enterprises, and related research in the theory is still relatively small, but theinternal control in the merger application for businesses is a valuable asset, and it can notonly prevent M&A potential risks, but also to ensure consistent and matched acquisitionstrategy with the company’s strategy for long-term development of enterprises.