Research On Risk Prevention Of Central Enterprises In Mergers And Acquisitions Of Small And Medium-sized Private Enterprises

Merger and acquisition is one of the quickest ways for enterprises to achieve leapfrog development in the current era.Report of the 19 th session of national congress of the communist party of China proposed that developing mixed ownership economy will be the most powerful means to further deepen the reform of state-owned enterprises in the future.In recent years,a large number of cases show that the reorganization target enterprises of central enterprises merging private enterprises are mixed ownership enterprises,but on the other hand,there are few research cases in the theoretical circle.Small and medium-sized private enterprises generally have relatively weak comprehensive strength,imperfect corporate governance structure,family management and other common characteristics,which are quite different from central enterprises in management style,corporate culture,corporate image and other aspects.Therefore,central enterprises usually face greater risks in the process of Mergers and Acquisitions small and medium-sized private enterprises than in state-owned enterprises and large private enterprises.Based on this,this article will mainly use case analysis.Through taking YT Group(central enterprises)merger and acquisition process of N enterprises(small and medium-sized private enterprises)as a typical case to study and analyze its merger and acquisition risks.Not only that,the author will also put forward some targeted prevention and optimization measures for merger and acquisition risks from the stages of merger and acquisition decision-making,implementation,integration and evaluation.Finally,the author not only hopes to make up for the lack of existing research literature through this study,but also provides useful reference and suggestions for the merger and acquisition cooperation between central enterprises and small and medium-sized private enterprises.This paper consists of six chapters,Specifically as follows:The first chapter is the introduction,which mainly elaborates and explains the research background and significance,research ideas and methods,as well as expected contributions and shortcomings.The second chapter is literature review.In this chapter,the author mainly summarizes and sorts out the viewpoints of the existing research documents,and refines some classical theories that can be applied to this article.The third chapter is a detailed introduction and discussion on the current situation and existing problems of central enterprises merging small and medium-sized private enterprises.The author chooses to analyze it from the perspectives of motivation,characteristics,current situation and problems after the completion of the taskThe fourth chapter is a case study,which is also the core of this article.In this chapter,the author will introduce the basic situation of central enterprise YT Group's acquisition of small and medium-sized private N enterprise,and summarize the risks that may arise in this process.The fifth chapter is based on the case analysis of the fourth chapter.In this chapter,the author will also put forward some targeted prevention and optimization measures for merger and acquisition risks from the stages of merger and acquisition decision-making,implementation,evaluation.The sixth chapter is the research conclusion and suggestion.On the basis of the above theories and relevant case studies,the research conclusions are drawn and relevant suggestions are put forward.Through the analysis and demonstration of six chapters,the following conclusions can be drawn:(1)The merger and acquisition integration risks faced by central enterprises and small and medium-sized private enterprises are relatively high,especially the cultural integration risks.(2)It is difficult for central enterprises to cooperate with small and medium-sized private enterprises in mergers and acquisitions.The main influencing factors are the different rights of the same share and the unilateral financial support provided by central enterprises.(3)M&A risk management needs to run through four stages: decision-making,implementation,integration and evaluation.The introduction of PMBOK project management method into M&A process can prevent M&A risk.(4)The design and implementation of effective internal control can prevent the risk of M&A.