Enterprise M&a Project Risk Management Research

Rapid growth of the enterprise usually have two models, endogenous type and extension. Endogenous means the internal growth in enterprises, such as improving the innovation capacity of enterprises to achieve rapid profitability of the new products, or to enhance their management capabilities to achieve business growth; most of extension growth means the mergers and acquisitions (M&A). These measures can achieve not only fast business growth objectives, but also the integration of enterprise resources. Though M&A activity can achieve rapid business growth, there is a huge risk. M&A failure may lead enterprise development to go back or even bankruptcy of enterprises. There are also the large numbers of corporate M&A which are failure instance. M&A have a certain impact on corporate finance. Whether in the merger integration process use their strengths to enhance the added value of M&A. They are all risks. Once a part of M&A process have a problem, the whole M&A activity will fail. So it is valuable to study the risk of M&A.First the article tries to study the theory of risk management. Then combining with the pharmaceutical industry M&A, this article refine the pharmaceutical industry M&A characteristics. Eventually it applies risk management theories to the actual operation of the M&A case. The application of the risk identification, risk assessment, risk management, and other means are helpful to reduce the risks identified and ensure that M&A carried out smoothly. The application of method of risk control in the integration period is helpful to find potential risk out and lower the risk with emergency response plan for the M&A project. Finally the merger plan is ensured. This study about the risk management system plays to reduce risk and improve the role of M&A success rate of M&A in the pharmaceutical industry.