The Analysis And Prevention Of The Risk In M&A

It is well known that M&A of enterprise, as a growing style of enterprise, contains great risk when it brings opportunity and profit to enterprise. Analyzing many cases of M&A, the failure rate is even higher than 50%, which makes the enterprises suffering enormous loss. Therefore, it is very important for the decision makers to solve the measurement, management and recognition of the M&A risk. This article has conducted a comprehensive research from the fundamental theories to the recognition, measurement and safeguard aspects of the risk in M&A. It is expected that this article can provide the decision makers with reference, and make the M&A reach the anticipated effects.Firstly, this article reviews the current research on the risk of M&A, and summarizes the theories of M&A. On the basis of this, research on the reasons and the influence factors of the risk in M&A, as well as the types of the risk in M&A. By means of the empirical research on 93 listed corporations which occurred M&A in 2002, the following conclusions are got: the risk in M&A of enterprises in out country is very high, and the reorganization after the mergers and acquisitions is very important. Meanwhile, the policy-makers in M&A have to take various methods to reduce the risk and enhance the efficiency. Secondly, the recognition of the risk in M&A is conducted. Mainly focuses on the significance for recognizing the risk in M&A, recognition principles and the recognition methods. On the basis of above, the analysis recognition is carried on a typical case. Thus, the conclusions are obtained as below: the policymakers should take the risk of M&A seriously, and adopt the appropriate methods to carry on the recognition on the risk as well as considering their own situation. There are so many factors of the M&A risk and it is very difficult to reflect them by quantitative methods. Therefore, the combination of fuzzy evaluation and AHP methods is adopted to conduct on the research on the risk in M&A in this paper.At last, on the foundation of above research, some suggestions and ideas about safeguard against the risk in M&A are given. It is desirable that enterprises in M&A take various efforts, such as those from government, enterprises and society, to safeguard against the risk, lower the risk and raise the performance of M&A.