Mergers And Acquisitions Risk Assessment For Domestic Mining Projects

This paper originates from the national social science fund project of “evaluation on the operation and management risk for overseas mining investment and study of the early warning system”(Item number:12CGL008).This paper takes the M&A risk for domestic mining projects as the main line,on the basis of the arranged the research results at home and abroad,comprehensive studied with application AHP,genetic algorithm,cloud model and matter element analysis,etc,and applied with a certain project.The main contents and conclusions of the paper are as follows:Describes the background and significance of the paper,and reviews the basic concepts and types of M&A.Then reviews the M&A risk of domestic and foreign from three aspects which is motivation,risk and risk assessment.It describes methods of AHP,genetic algorithms,cloud model and matter element analysis in application of risk assessment.Using the Delphi method to identify the risks of M&A of domestic mining projects facing,summarized its main risk comes from four levels of industry,marketing,finance and mineral resources risks,and these four risks refined the 12 secondary assessment indicators,and then established a risk assessment index system of M&A of domestic mining projects.Applying AG-AHP to the evaluation index system established,calculated the index weights by GA-AHP using MATLAB software.This article introduces cloud model to matter element analysis,therefore,put forward a risk assessment model on M&A of cloud matter element model based domestic project.Applying the established model to the merger of domestic Tungsten project of company B by Mining Group A,calculated the related degree of the case with the help of MATLAB software.The results showed that the risk grade on industry is higher,market,finance and mineral resources,general and the overall risk evaluation of the project is general.And the assessment results are analyzed in detail.The results show that: the evaluation results comparatively consistent with the practice,therefore,the evaluation index system and model constructed in the paper has some theoretical and practical application values,and can provide the corresponding theoretical basis and decision support methods for M&A of domestic mining projects.