The Financial Risk And Its Control In M&A

The Merger and acquisition (M&A) as an effective approach for enterprise resources operating and allocating, along with development of the market economy, also advance constantly. Since nineteenth century, America, represent western countries, has five big scales M&A experience. Free market evolve to a monopoly stage. Under the influence of market globalization, domestic enterprise facing the fierce competition to participate international market, M&A becomes an important way for Chinese enterprises in the market low-cost expansion and resource adjustment on macro flexibly. The significance is great for our economic construction in the research of the M&A. Financial risk is the key factor in enhancing the success of the merger throughout the M&A process.This article aims at the financial risk analysis in the process of the enterprise M&A, tracking forms and reasons in recognition of the financial risk, put forward the strategy in corresponding control. The paper is divided into three parts:First part, the topic and research content in this paper, analysis the causes of financial risk in M&A, and review the current research situation of domestic and foreign theory; The second part, comment on the related theory in M&A and the financial risk, further advice on financial risk control in acquisition pricing, financing, payment and the integration process; The third part, M&A is being constantly applicated in the restructuring of the media group development, the integrated use of the above theory to the media group case analysis, and make brief comment.The paper combine with the theoretical research and the case study method. Hoping it would be beneficial for Chinese M&A activities.