The Analysis And Defense Of Financial Risks In Enterprise Merger And Acquisition

The Re-organization and merger of enterprise becomes a certain trend with the growing of economic globalization . It is also a new concept in enterprise management. Under the influence of market globalization , information globalization , and the development of high technology industry, the allocation of enterprises productive elements transfers to a dynamic & open process. The trade object is property right. We achieve the control right cession and Re-organization of recourses by property right cession. This is an important way for enterprise to grow outside, and also the power for re-structure in national industry and innovation of enterprise system. It plays more and more vital part in capital market. Meanwhile, from the feature of merger itself and the practice of merger , mergers are also the capital administration activity with high risk . Many enterprises "disappeared "because of merger. So reinforce the management of financial risk of merger is very important in practice.The research purpose of this paper is to find out the reasons that give rise to financial risk of merger, to tell us how to recognize the financial risk of merger and also to try to find some ways to solve the problems.The paper is based on the researches of inside and outside , to table some proposals through normative analysis.The whole paper is divided into six chapters: In the first chapter, we raise the point of this paper that is to analyse the reasons to bring on financial risks, and to find some ways to solve the problem.Also wc introduce the situation of this point;In the second chapter, we introduce the definition of merger and acquisition , and also explain the financial risks of M&A: uncertainty that is caused by all activities relevant merger and acquisition; In the third chapter, we try to expound effective methods to control the risks of M&A;In the forth chapter, The Case Analysis of BOSAI MINERALS GROUP Purchase South America Omai Bauxite Mining Inc.Using theories,the paper analyses a case of BOSAI MINERALS GROUP Purchase South America Omai Bauxite Mining Inc,and gives some comment; In the fifth chapter, we provides enterprises a set of methods to prevent and avoid risks of M&A. In the end, the paper summaries on the basis of above paragraphs.