Research On Financial Risk Controlling Of M&A Between ZOOMLION And Chery Heavy Industrry

In the rapid development of the global economic situation,enterprises in order not to be eliminated by the society can only continue to grow their own,by looking for ways to make their own development to better cope with various challenges and competition.While the merger can effectively promote the development of the enterprise,make it bigger and stronger.The domestic high-end agricultural market has been monopolized by foreign the embarrassing situation,so only for high-end layout,in order to make China agricultural equipment really developed,but also the only way to make its long-term development,which is why ZOOMLION eager to merger and acquisition of Chery Heavy Industries.Acquisition tremendous risk,once the improper handling will cause huge losses between the enterprise merger and acquisition.Acquisition is a high-risk business activities,must fully understand the risk consciousness and the existing merger decision to avoid the trap of mergers and acquisitions,in order to Get success.The acquisition of Chery Heavy Industry with ZOOMLION's financial risk and how to control the risk analysis as the research object.Through literature analysis and case analysis on the background of the development of mergers and acquisitions between the two companies,the acquisition process and operation status were analyzed.The study found that there are mainly in the merging process of pricing risk,financing risk,payment risk and risk of financial integration these four kinds of financial risk.Mergers and acquisitions pay too high price,unreasonable financing structure,inappropriate payment and financial integration is not in place will lead to increased financial risk.With the help of synergy theory,risk management theory,and puts forward some countermeasures to reduce ZOOMLION's acquisition of Chery heavy industries that produce the financial risk of mergers and acquisitions including:fully grasp the basic information of the target enterprise,choose appropriate financing method and reasonable payment,clear property Business management objectives,to do a good job before and after the integration of financial supervision and other ways to spread and control the risk.Paper by studying the United,mergers and acquisitions Chery the M & A activity may generate financial risk and puts forward the risk control measures,for enterprises to strengthen risk awareness,prevent mergers and acquisitions failed and establishment of efficient financial risk management system and has certain practicalvalues.