The Risk Management Research Of AN’s Capital Expansion

Under the background of the economic integration and market globalization, enterprises in different countries are racing to develop. The developing moderelying on capital accumulation to expand was eliminated because of its inefficiencies for enterprises. Nowadays, Enterprise M&A has become the most extensive and rapid expansion means which can optimize resource allocation, adjust industrial structure, improve management level and social productivity. But every coin has two sides, enterprise M&A also brings a complicated, systematic, and risky job. According to incomplete statistics, quite a large proportion of enterprise M&A failed. Many factors may lead to the failure of whole process of the M&A, such as information asymmetry, organization integration, culture integration, financial risk and so on. This paper investigates a young enterprise named AN thrives on financing and M&A, analyzes the company from birth to grow up, to the crisis.This paper firstly describes basic concept such as M&A, risks, financial data. Then explains and analyzes the status of the AN company and its M&A process and risks. This paper also analyzes the environment factors which affects the M&A process, and gets experience from two M&A cases. Based on these theories and experiences, qualitative and quantitative assessment are used to identifies risks, plan with risk controls is made, Safeguard measures is offered. However, there is no perfect plan, besides the innovation spot, limitations and problems to be solved in the futurearealsodiscussed.