Research On Financial Risk In Enterprise Mergers And Acquisitions

In today's world, the pace of economic globalization accelerated, economic and technological exchanges and cooperation in the world is deepening, to stimulate enterprises to "go out", at the same time, the operating principle of maximizing the interests of and urge enterprises to embark on the road of merging, cross-border mergers and acquisitions this situation based on the boom is still high, it has become an important means of its production scale and enhance the market competitiveness of the expansion of some enterprises. By comparing the enterprise to optimize its own internal resources to develop, mergers and acquisitions can not only the rational allocation of resources, reduce investment risk and reduce transaction costs, but also to help enterprises achieve integration and synergies. In addition, can also be the appropriate tax and tax avoidance. That is to go out of the cross-border mergers and acquisitions, in the domestic market is almost saturated state, the company must look into foreign markets, expand their scale, realize the maximization of enterprise value,while the absorption of foreign advanced technology and management experience.However, a merger is indeed a double-edged sword, high risk high interest. Looking at the history of mergers and acquisitions at home and abroad, despite the enthusiasm of the company's continued to rise in mergers and acquisitions, but the failure of M& A events occur frequently, many companies in mergers and acquisitions in the process of loss,or even bankruptcy. Many enterprise managers only see the advantages of M & A to the enterprise,so as to ignore the risk of mergers and acquisitions, especially financial risk.As a result of foreign enterprises to our country's large-scale investment and mergers and acquisitions,the domestic enterprises have a huge impact. In order to cope with the dual pressures of the domestic market and foreign enterprises, in order to adapt to the tide of globalization,China must increase the risk of mergers and acquisitions. In addition, China's enterprises in transnational mergers and acquisitions in the financial risk is not enough, still exist because of strategic mistakes or merger risk mismanagement leads to the failure of mergers and acquisitions, so this paper takes enterprises in transnational mergers and acquisitions in the financial risk as the research content research, first of all, the purchase and development of domestic and foreign research background, status expression and financial risk of mergers and acquisitions in the related literature summary. Secondly, the paper explains the basic definition of M & A, the definition of M & a.. Then introduce the specific case:strategic risk, may face H GE appliance in the process of mergers and acquisitions group valuation risk, financing risk and integration risk, and in view of the above risk puts forward some measures that can be implemented to prevent risks. Finally, this paper summarizes the content of the research, and puts forward the innovation and deficiencies. It is hoped that the combination of theory and case analysis can provide reference for Chinese enterprises to predict, evade and control risks in transnational merger and acquisition.