Research For Controlling The Risk Of M&A Financing In Real Estate Enterprise

In the past twenty years, as a rising industry, China's real estate industry experienced the evolutionary process from planned economy to market economy, welfare time to independent purchase. As a capital intensive industry, China's real estate enterprises suffered from a series influence of state macroeconomic policy since 2008, enterprise's funding gap is becoming quite large, facing the danger of capital chain rupture, therefore, through Merger & Acquisition (abbr. M&A) to integrate the real estate enterprises has become the necessary approach for the corporation to be strong. According to the 2010 Chinese acquisitions statistics report, it shows that more than 75% of merger capital come form bank loans in China's real estate enterprise, highly concentration of financing modes will exacerbate the financing risk of real estate enterprise merger, even lead to the risk of enterprise's bankruptcy. Therefore, to control the financing risk has an important practical significance.This paper analyzes the current research situation financing risk and measurement methods of domestic and international enterprise merger, pointed out that the problem like the single way of China's M&A financing and imbalance of diversified financing. And it summarizes financing risk of real estate enterprise merger, also calssifies the financing risk according to different financing modes. In contrast to the advantages and disadvantages of other risk measurement methods, to measure the financing risk in using efficacy coefficient method, and to discuss the applicability and feasibility of this method, to analyze the rectification of efficacy coefficient method, including the system construction of this method. According to the case analysis of real estate merger, this paper explained the calculating process of efficacy coefficient method. On this basis, this paper selects the case of the real estate enterprise merger in 2009, it concluds that the most financing risk is in the level of minor and moderate warnings, it proposed 5 points for control financing risk of our real estate merger, such as optimization financing structure, broaden financing channels, selection of innovation financing methods, improvement related regulations of real estate financing system and so on. In order to reduce the financing risk, optimize financing decision, to promote the further development of the real estate enterprises, it has an important significance for the rapidly improvement of market competitiveness.