The Financial Risk In Mergers And Acquisitions Of Enterprises

With the rapid development of the modern economy,corporate mergers and acquisitions have become an important strategic way for enterprises to expand and achieve rapid development.However,due to the late start of mergers and acquisitions of Chinese enterprises and the lack of experience in mergers and acquisitions,the mergers and acquisitions of Chinese enterprises are not all ending with success.The reason for chasing it is because M&A has a long-term and complicated process.In the process of M&A,it will suffer a lot of risks,and these risks will continue to run through all the processes of M&A,which will affect the success of M&A.Among so many risks,the financial risk of M&A is the most important,which directly affects the success of M&A.Moreover,enterprises are not aware of the financial risk prevention of mergers and acquisitions,then do not have good prevention and control over the financial risks of mergers and acquisitions.Especially in China,corporate mergers and acquisitions start later than foreign companies,the M&A system is not mature enough,and there are still many areas for improvement.Therefore,the analysis and control of the emerging financial risks in the process of mergers and acquisitions has certain practical significance,and will give some reference for future mergers and acquisitions.This paper firstly summarizes the financial risk research in enterprise mergers and acquisitions at home and abroad through the literature method,and then takes the relevant theory of corporate mergers and acquisitions financial risk as the basis of this research,and through the analysis of M enterprise merger and acquisition N enterprise as a case,the paper analyzes the financial risk motives and causes in the enterprise merger and acquisition,and points out the financial risks faced by the enterprise,and proposes the control measures taken by the enterprise to control the financial risk.Then,the M companies selected some financial indicators and analyzed them to analyze the financial situation of M companies after the merger and acquisition.Finally,in view of the problems existing in enterprise mergers and acquisitions,it puts forward some inspirations and suggestions,in order to provide reference for future mergers and acquisitions,and improve the control ability of corporate mergers and acquisitions financial risks,so as to improve the probability of successful mergers and acquisitions.