Study On Financial Risk Assessment And Prevention Of AVIC Capital Merging Tanda Company

Merger and acquisition is an important means to realize the strategy of mergers and acquisitions.With the increasingly fierce competition among modern enterprises,mergers and acquisitions among enterprises are increasing.Although M&A is conducive to the implementation of M&A strategy,due to various unexpected factors,M&A is also a highly risky activity.Among the risks of M&A,the financial risk of M&A is one of the main risks.Preventing financial risks in M&A is an important part of M&A decision-making.Risk prevention is based on risk identification and assessment.Therefore,it is of great significance to accurately identify and evaluate the financial risks of M&A for the prevention of M&A risks.In view of this,this paper takes CAAC Capital Merger and Acquisition of Tanda Company as a case,through the case of financial risk identification and evaluation of merger and acquisition,to provide some reference for guiding the financial risk management of enterprise merger and acquisition.This paper takes the financial risk of CAAC’s capital M&A of Tanda Company as the research object.Firstly,it expounds the definition,motivation and characteristics of enterprise M&A,and the definition,types and causes of financial risk of M&A.Then through Delphi method to identify the financial risk of CAAC’s M&A of Tanda Company,the identified M&A financial risk includes decision-making and pricing risk,financing risk,payment risk,financial integration risk,a total of four categories,specific 12 risk factors.The weights of risk categories and risk factors are determined by analytic hierarchy process.The weights of decision-making and pricing risk,financing risk,payment risk and financial integration risk are 0.3563,0.1938,0.1248 and 0.3251,respectively.The comprehensive weight of each specific risk factor varies from 0.0416 to 0.1781.Applying the comprehensive evaluation method of fuzzy mathematics to evaluate the financial risk of CAAC’s capital merger and acquisition of Tanda Company,the risk level of decision-making and pricing is low,the risk level of financing and payment is extremely low,and the risk level of financial integration is high.The overall financial risk level of China Aviation Capital M&A Tanda Company is low.Finally,it puts forward some suggestions to prevent financial risks in M&A,including strengthening information collection and due diligence;actively using endogenous financing to control debt financing;paying in stages as far as possible;after the completion of M&A,it is necessary to promote the matching of Tanda Company and related industries of China Aviation in order to maximize the realization of the strategic objectives of the M&A.