China’s Private Listed Company Merger And Acquisition Risk And Its Control Research

Mergers and acquisitions has a great influence on the global economy and to promote global economic development of economic, not only can help the enterprise to realize from the inside to the outside of the double promotion, can also be ordered to expand the scale of operation and to stimulate its in the new market competition ability, which for the vast majority of enterprises is a great attraction of. With expanding of the size of the private economy in our country, private enterprises progress rapidly in the past few years, small and medium-sized private enterprises to position themselves in the market occupied by also has the latest craving. But by restricting China’s current financial system, banks and other social major financial institutions, in the normal state in order to prevent financial risk and out of consideration for the interests of the funds, they choose the more resources to invest in the central enterprises and state-owned enterprises, this also let our country private enterprise financing difficult, high financing cost and the problems highlighted in the increasingly strong. On the other hand, private listing Corporation are trying to make equity pledge or refinancing, or the use of its credit rating to guarantee loans to bypass corporate finance difficult this invisible mountain. In this context, forcing a large number of private enterprises in China through the form of mergers and acquisitions to get rid of the financing difficulties, to achieve their rapid development. But at the same time, we found that many private enterprises in the acquisition does not take into account the merger and acquisition risk and its causes, nor the corresponding risk prevention measures, many companies in M & A activity is completed for the direction of its development is not clear enough, merger and acquisition activity in the process often continuously, which seriously interferes with private enterprise in the normal process of growth, also erode the investors of the long-term trust.Erdos group is a well-known private enterprises in China, this paper selects the Ordos group merger is a typical strong, private enterprises in the ranks, such as Erdos group is from state-owned enterprises into private enterprises, private enterprises from the local economic development and growth pillar enterprises scanty, this paper attempts to study the problem of mergers and acquisitions the existence of private enterprises as a case, through statistical and inductive Ordos group merger case problems in the process of risk analysis, but also for private enterprises to produce in mergers and acquisitions activities are discussed, and describes the characteristics of each stage of the risk and the risk, and then extended it puts forward some effective measures to prevent and control the risk of merger and acquisition for private enterprises, and gives the future of enterprise. Several suggestions and Countermeasures of China’s private enterprises in the future will be expected to make some reference and use for reference in the future.