Research On The Risk Of M & A

In1901,one of J.P Morgan’s deal opens another road of the enterprise growth--Mergersand Acquisitions. M&A can expand the scale production of enterprises, improve benefit,promote the flow of factors of production, achieve the efficient way that industryconsolidation, for the strategic adjustment of economic structure also plays an important role.So far western countries has experienced five large-scale wave of M&A, the famousAmerican economist G.J.Stigler thought: none of the big companies in the United States is notthrough acquisitions and grew up in a way that, almost without a big company mainly rely oninternal expansion grew up. M&A in China began in the mid1980s, with the improvement ofChina’s economic openness, the perfection of market economy and the deepening of theindustrial structure adjustment and transformation, a large number of M&A happened. China’senterprises and entrepreneurs have faced M&A.M&A as important and inevitable strategic choice of the path of firm growth has anirreplaceable advantage, but the reality is often cruel. Almost half of M&A ends in failure.Compared with western countries, our country enterprise mergers and acquisitions researchon theory and practice, there is a big gap, many M&A failure case thought-provoking.Through research we found that the acquisition of the entire process is filled with many risks,and it will affect the final effect of M&A. So the point of view, M&A is essentially a strugglebetween and risk, is a risk control activities.This article selects the strong M&A color G Co., LTD as the research object, which hasexperienced many times wave of M&A. This article selects the case M&A between Gcompany and D company in2009for study and divides M&A into three key points, analysisthe risks and what steps were taken to control the risk, summarize the risk control experiencesand lessons in order to provide some suggestions to reduce and control risk in M&A for ourcountry enterprises.