The Research On The Financial Risk Management Of M&A In The CSR-ZELRI

Under the global economic integration's impetus, tough competitions force enterprises to expand their strength through merger and acquisition. Particularly along with the rising in high and new technology industry, the shorter actual grow cycle and the more risks lead enterprises to rapid expansion by purchase. Nowadays, the international acquisitions grow fast and became a trend in the economic globalization. At the same time, the Chinese Enterprises'acquisitions expend to various areas. The numerous volume of this kind of trade in the Asian and Pacific area make them in the leading position and become a highlight in global economy, similar as the economic development of China.The successful mergers and acquisitions are about 30% in all of these cases. Most of the failures can be traced to the financial risks. In its reasons, the merger or acquisition from economy is a long-term investment with complex financial operations and potential inevitable risks. The financial risk brings sometimes the fatal consequence. To optimize the national economy structure and the state asset through merger or acquisition, risks need to be highlighted, especially to financial risks and how to avoid.This paper embarks from the elementary theory, elaborates the financial risk constitution and the influencing factor in merger and acquisition, and tries hard to analyze its origin and the control method. After this in junction with the real acquisition case in CSR Times, this paper summarizes the success and defeat's experience in financial risk management aspect, and from this to archive a systematic method in the financial risk management.This paper believed that, facing quick changes in the domestic and international economic environment, CSR Times'positive"going out"strategy per the utilization of the property operation and the capital merger or acquisition, is an effective measure to enhance its core ability and reduce the gap with competitors. Through merger or acquisition, synergistic and complementary effects in the value chain may be obtained in strategy, management, technology, market, supply chain and so forth. In the merger or acquisition process, CSR Times must consider risk factors, in which the financial risks are the core risk among all. In view of the different case, certain plans and measures need to be taken accordingly to try to reduce financial risks in order to reach final success.