Research On The Financial Risks Of Merger And Acquisition

Under the economic globalization,M&A has become an important trend of world economic growth,and M&A can be rapid expansion through mergers and acquisitions.Therefore M&A is also a convenient way for enterprises to improve their competitiveness.In recent years,with the comprehensive strength of all aspects of China's enterprises continue to increase,corporate mergers and acquisitions activities have increased,but more domestic M&A case,the desired results did not be achieved.A common reason for the failure of these cases is that the M&A financial risk can not be found in the process of M&A,and the timely and effective measures can not be taken.Therefore,how to effectively identify these M&A risks in the M&A process,and how to take reasonable preventive measures to improve the efficiency of mergers and acquisitions will be followed by China's enterprises to continue to take the reorganization of mergers and acquisitions business expansion,improve enterprise competitiveness Urgent need to solve the problem.In this paper,the basic idea of the article is "to ask the question-analyze the problem-to solve the problem",and based on the basic situation of our M&A and financial risk management needs to M&A financial risk research center.In the course of the study,the paper first summarizes and summarizes the domestic and foreign literatures related to the financial risks of M&A,then describes the basic concepts and relevant theories of M&A financial risk,and puts forward the main problems existing in the M&A process.Financial risk,which is divided into five categories,namely information asymmetry risk,target enterprise value assessment risk,M&A financing risk,payment risk and post-merger financial integration risk.Then,it analyzes the formation reasons of the above five kinds of M&A financial risks.Secondly,this paper takes M&A case of China M&A as an example to introduce the motives of M&A and M&A,analyzes the reason of its financial risk,and analyzes the financial indicators after M&A to deal with the M&A process In the financial risk.Finally,based on the above financial risk research on mergers and acquisitions on the basis of multiple angles from how to take measures to prevent financial risk.Through the above analysis,we hope to combine the theory and practice effectively,which can serve as a reference for the financial risks encountered by Chinese enterprises in the process of M&A.