Analysis And Control Of Financial Risk Of Mergers And Acquisitions

With the pace of reform and opening up,M&A activities of domestic enterprises are also developing rapidly.Now many companies regard M&A as the preferred method for expanding scale,achieving synergy and diversifying.However,a large number of reports and data analysis show that the M&A effect of domestic enterprises is not optimistic.The situation is mainly caused by the improper handling of various risks associated with M&A activities.The most critical of these risks is Financial risk.Therefore,it is of great significance to effectively analyze the financial risks arising from mergers and acquisitions,and to summarize the effective prevention and control strategies,which will contribute to the healthy development of M&A activities in China.The thesis uses literature research method and case analysis method to study the financial risk of corporate mergers and acquisitions.Firstly,the thesis summarizes the domestic and international research on the financial risk of M&A,and based on the previous research,it makes a new statement on the concept and motivation of M&A and the concept and cause of M&A financial risk.Secondly,based on the case of"Haoxiangni" and "Baicaowei",the financial risks faced at different stages of the M&A process are analyzed in detail.Finally,the risk prevention and control measures that can be borrowed from the case are summarized.It is expected to provide experience and reference basis for the prevention and control of financial risks with certain practical value for domestic similar enterprises.The conclusions of the thesis:M&A financial risk has a significant impact on M&A activities.M&A financial risks mainly include evaluation risk,financing risk,payment risk and integration risk.In the case,"Haoxiangni" has a good performance in the prevention and control of financial risks of M&A,except for integration risk.Other similar enterprises should choose appropriate merger and acquisition plans in combination with their capital structure,profitability and shareholding structure when conducting M&A activities.The integration risk after the completion of M&A is still the top priority of the company.The integration risk will directly affect whether the corporation in M&A can achieve the expected results.By analyzing in detail M&A financial risk of the actual case,the study can get the means for prevention and control of financial risk that other companies can refer to.