Comprehensive Study Of Financial Risk Control In M&A

In the increasingly perfect market economy system in China,more and more companies want to implement diversification strategies through M&A,integrate the industrial chain,increase market share,achieve economies of scale,optimize the allocation of resources,and reduce operating costs.However,as a result of many domestic M&A practice cases,the vast majority of companies have not successfully completed M&A or failed to achieve the expected M&A effect.Some companies have even suffered huge economic losses due to such M&A loss.The root cause of the above-mentioned phenomenon is undoubtedly the financial risks in the merger and acquisition.Therefore,the study of the financial risk in the process of M&A is of great significance to the improvement of M&A in China.From December 2012 to June 2014,Power China Real Estate gradually grasped the actual control rights of Langold Real Estate through three stages of M&A.Through this M&A activity,Langold Real Estate has obtained a good platform for real estate central enterprises provided by Power China Real Estate.Power China Real Estate also achieved the purpose of indirect listing through this merger and acquisition.Power China Real Estate adjusted its M&A plans in a timely manner in the acquisition of Langold Real Estate,avoiding unnecessary expenses and using cash to avoid the risks of dilution of equity and further increase in asset-liability ratio.After M&A,they formed complementary advantages and became southern countries.Home ownership builds a higher platform,so that they can join forces.In the three stages before,during and after the merger,Power China Real Estate has reasonably controlled the financial risks and successfully completed the experience of the acquisition of Langold Real Estate.This article consists of five chapters,including: The first chapter is the introduction.Briefly introduces the significance,background,methods,previous research results,the ideas and framework of this article.The second chapter is related to the concept of definition and basic theory.Firstly,the explanation of definition of M&A,the types of M&A,the motivation of M&A and the process of M&A are analyzed.Then the types of financial risk in M&A are expounded and some effective methods of financial risk control in M&A are detailed.The third chapter is an analysis of the status quo of M&A in the case.First of all,a comprehensive introduction to the basic situation of the merger,including the background of the industry and policy of M&A on both sides of the basic situation.Then it gives a detailed description of the whole process of Power China Real Estate 's grasping the controlling right of Langold Real Estate and makes a detailed analysis of the impact of the M &A and financial risks.The forth chapter analyzes the impact of Power China Real Estate 's construction financial risk control measures,detailed into the control of the valuation of risk before M&A,the control of payment risks during M&A,the control the risk of integration after M&A.The last of this chapter is the analysis of those control measures.The fifth chapter is the conclusion and enlightenment from this case.Summarize the full text and expound the reference significance of dealing with financial risk in the process of M&A.