China 's M & A Loan Operation Mode And Risk Prevention

The number of M&A case gradually increased in recent years, with fast development of economy, the fierce market competition and the integration of domestic and overseas market, causing large finacing demand for mergers and acquisitions. M&A loan as a new type of loan in China, has become an important driving force of the growing M&A market in China. But during these five years, many enterprises faced difficulty to obtain such loans. This is because the M&A loan has higher and more complex risk than the traditional loans. With better M&A loan operation pattern and the related risk control,it is more likely that it will heip more companies, and boost the industrial structure optimization.This paper obtains from the commercial bank credit management theory, combined with the current situation of M&A market in China.Using various analysis method, discusses the current situation of M&A loan in China. The operation mode and risk management of M&A loan are also analyzed. Putting forward specific suggestions on the basis of foreign mature M&A loan operation mode and related cases.The main content of this article are as follows. First, discussing the basic situation of the M&A loan in the credit management theory. Points out that the M&A loan business needs to find out better operation mode and risk management mode. M&A loan, unlike other loans,are constrained by strict policy, experienced tough process of development. The second part is to research M&A loan’s current operation mode and the problems of risk management. Summarizes the operation mode from the perspective of procedure and the perspective of business operation. On the basis of the supply and demand in current M&A loan business market, shows that the problem of China’s M&A loan operation pattern lies in insufficiency of risk management. Shows that China’s M&A loan risk control commonly lies in data review, contract clarification, guarantee, and post-loan management of withdrawal conditions. Combined with cases of the enterprise performance after loan, analyses various reasons of why credit risk incurred. Third, sum up the m&a loan operation model in United States and Japan, and put forwand the measures in supervision and innovation to actively promote M&A loan.