Research On The Evaluation Of Financial Risk About Mergers And Acquisitions Of Enterprises

With the sustainable growth of China’s economy, more and more traditional industries accelerate the transformation and upgrade, diverse forms of ownership to enhance initiative, Chinese domestic listed companies, the wave of overseas mergers and acquisitions is also surging. But M&A is also a "double-edged sword," many merger cases often end in failure. In the M&A process, all risks are the ultimate form of financial costs, so companies cannot ignore the impact of financial risk throughout the M&A activity, which is the key to success. Our research mainly focused on the reasons or strategic choice, this paper selected the view of financial risk and analyzed.Firstly, the research status of M&A were reviewed and summarized, then explained the elaborated theoretical overview of the theory and financial risk by a chapter, that provided a theoretical basis for establishment of the evaluation system. Secondly established the enterprise financial risk model after saw many previous hierarchical model, included pricing risk, financing risk, payment risk and financial integration risks, under the sub-13 secondary indicators, hope to build a detailed scientific evaluation system. Then selected the expert questionnaires method, established the financial risk assessment index system through AHP and fuzzy comprehensive evaluation method when the survey results are summarized. Finally selected the influential case of ―China Ping An M&A Jahwa" to test accuracy and rationality of constructed system after listed some of the insurance industry merger cases and the relevant industry policies and regulations. Through calculation and investigation the conclusion were obtained and the main risk comes from the late financial integration risk. Furthermore, this paper strives to provide help for the future general business acquisitions for Chinese enterprises.