Based On Trade And Integration Of Enterprise’s M&A Financial Risk Control

The expansion and development of enterprises generally depend on the original production and accumulation from daily operation. In order to expanding the scope of their business and managing capacity, the industry expands horizontally and vertically when the operating results reach or better than the expectation. But now, along with the traditional expansion, mergers and acquisitions become another effective way of business expansion, and it has been effectively and widely used in progress. The prominent advantage of M&A is the grasp of time-efficient, compared with the traditional expansion; the speed advantage from M&A is not negligible. However, M&A has not always successful. There is also a great risk in the process of M&A. especially the financial risk. Inappropriate management of M&A financial risk may directly lead to the failure of M&A. From a global point of view, the failure cases of M&A are not rare. A large part of which is because of financial risk causes. Therefore, there are important significance on effective research on the financial risk of M&A, and establish enterprises in the implementation of the M&A risk management system, also improve the security and efficiency of M&A.There has many scholars to study in M&A financial risk management, but there is no specific conclusion in terms of risk management. The M&A risk will exist differently in different industries and in different enterprises. This article combined theoretical analysis and case studies, take China’s Aviation industry as background, and select the merger of the Eastern Airlines and Shanghai Airlines as a specific case study. The article also combine with the high fixed and flow cost in the aviation industry, and the feature of business process must be highly systematic integration. It points out the aviation industry in different financial risk in different merger stages. And it puts forward some countermeasures for how to deal with the various risks. The article also sums up the experience in the process of M&A financial risk management, in order to provide reference for future M&A cases in China’s aviation industry.