Financial Risk Analysis Of Corporate Mergers And Acquisitions

Merger and acquisition in China has become increasingly popular,but facing the financial risk of merger and acquisition activity.This paper studies the financial risk of mergers and acquisitions,first of all,through theoretical analysis of the formation mechanism of financial risk of mergers and acquisitions,the financial risks of mergers and acquisitions activities may be faced.Then select the western resources case which is a typical business transformation and diversification of Chongqing Hengtong,the specific choice,from the three aspects of mergers and acquisitions target structure,post merger integration,financial risk analysis as follows:(1)the target enterprise cheat up event "caused by the financial risks.(2)the goal of enterprise development is lower than expected,business transformation is not ideal,causing the risk of performance.(3)single payment caused greater liquidity risk.This paper puts forward the Enlightenment of preventing M & a risk:(1)before the merger,according to the strategy,choose the target enterprise scientifically.(2)in mergers and acquisitions,flexible use of various methods of payment and the need to broaden the financing channels.(3)after the merger,through the integration of the integration of assets,business management,financial risk prevention.