Dynamic Controlling About The Risk Of M&A Evaluation Of Chinese Listed Company

M&A is the general designation of merger and acquisition, which is a kind of investment behavior that an enterprise can control the others through achieving some or the whole property right under the modern enterprise system .According statistics figures, M&A has been already some more than 100 years history until now, which may be traceable from USA in 1897. Now, M&A has become the important channel of enhancing enterprise's life force and advancing productivity. Chinese M&A starts in 1984, until now only some more than 20 years history, but also has experienced 4 high tides, regardless of the state-owned enterprise, the collective enterprise or the private enterprise, to the present stage, all are facing the resources conformity and the reorganization. After entering WTO, Chinese enterprises face global fierce competition, and are inevitably up against the conformity and reformation of resource. M&A of the listed company has been the most events in Chinese capital market. However, According to related investigation material, the failure rate of M&A is very high, and the main cause of which would be strategy ambiguity, high price and failure of integration. In a word, M&A Evaluation is all-important in the decision of M&A.M&A Evaluation is a dynamic process that includes the choice of target companies, the evaluation of value and the price negotiation. At present, no matter at the theory aspect or at the practice of the evaluation of target companies aspect, M&A Evaluation has been equivalent to the evaluation of target companies, and the both' parties also make the end bargain price according to that.Based on the related researching and from the present situation of our country price decision of M&A, this thesis at first puts forward the problems in the price evaluation process of M&A from our country present situation, and systemically analyzes price factors from the microcosmic view and macroscopic aspect. Secondly, the text defines the Risk of M&A Evaluation: The Risk of M&A Evaluation is the failure probability that the buyer acquires the target company with high premium or the evaluation of the target company is lower than the lowest price that can be accepted by the target company because of the option of target company, the value appraising, the determination of the bidding scope, and M&A bilateral price gamblingand M&A market price fluctuation and so on. Thirdly, this thesis brings forward the methods of controlling risk based on the four steps of M&A evaluation. Finally, it explains the importance of M&A evaluation risk control through demonstrating cases and theories.