Enterprise Technology M & A Key Risk Factor Analysis

In knowledge economic era, rapid development of science and technology make any an enterprise difficult to develop all its technologies by itself. As an effective approach to acquire external technology, corporation technology M&A (merger & acquisition) has become an important instrument to achieve its strategic goal for one enterprise. With technological enterprise's increasing effect in accelerating economic and social development, the role technology M&A plays becomes more and more important.However, as a new uprising economic phenomenon, technology M&A only has less than twenty-year history so far. Neither scholars who devote to theory nor mangers devote to practice has adequately understanding on its rule. In fact, as a risk investment behavior, there are many failing cases due to inadequately understanding on technology M&A rule or deficient control on some risk factors in its operating process. Firstly, this paper devotes to the discussion of the common rule in the process of corporation technology M&A and focuses on its particular characteristics which distinguish from traditional corporation M&A. Secondly, the paper digs and identifies the key risk factors, analyzes their roots and characteristics, and suggests some control measures on some key risk factors abiding by the principle of risk management. Last, the present author chooses a case concerning that a domestic firm reached its fast growth by technology M&A, analyzing the measures it had chosen to control the key risk factors in the M&A process and summarizing its experience, which means a lot to direct the actualization of technology M&A in domestic corporations, promote technology M&A flourish in our country, help domestic corporations meet challenges in knowledge economic era, and reduce the gap of science and technology between our country and advanced counties.