Mergers And Acquisitions And Financial Risk Control

Merger & Acquisition has become the effective mechanism of enterprises reorganization capitalism recontribution.The rapid development of capitalism market and the appearance of financial tools and so on,constitute great risk for M&A.The practice of M&A,shows that the risk have great influence on the achievements and development of enterprises. So,how to reduce the risk in M&A is a pressing problem.Risk is the range or extent of change between would-be result and the actual result of a certain event.The widen the range is ,the more the risk;The risk of M&A is the range of change between finance actual situation and finance aims caused by M&A.The reduction of the risk of M&A has to obey the principal of controllability and fore controllability.Its characteristics, are, flexible, satisfactory,changeable,unpredictable and organizable.The design of mechanism should be based on clear relationship of ownership.Encouragement should be connected with control;Financial control should be connected with technology control.From the point of concert technical control,it refers to the ways to control the key points in M&A.Conclusion:we should connect the control of mechanism with the technical control,connect the regulation control and organization control,Then,we can reduce the risk of M&A to the acceptable range.