Discussion Preventive Measures On Refinance And Payment Risk Of Mergers And Acquisitions

With the two meanings--merging and acquiring, enterprise merger and acquisition is referred M&A internationally. In China, it is referred to as mergers and acquisition, which means merging and acquiring between enterprises. It is a major way of capital operation and management, which means legal representative to gain ownership rights from other enterprise by way of fair trading on the base of voluntariness and compensation.With systematicness, complexity and riskiness, enterprise merger and acquisition(M&A) is one of capital function modes to achieve optimal allocation of social resources. In the background of global financial crisis and domestic industry consolidation, there is a growing trend for enterprise merger and acquisition. However, in the process or after mergence, due to asymmetric information and incomplete due diligence, there is a series of financial and legal risks such as out line of the financial system, tax black hole, insider trading, financing difficulties and so on. After undergoing the failed mergence several years ago, more and more companies recognize the risk in mergence and take measures to actively prevent risks. Thus, due diligence prior to the acquisition, tax planning, financing arrangements and other precautionary measures seem particularly important.In this context, with mathematical analysis of the practice of domestic enterprise merger and acquisition in 2013, based on the analysis of practice and research on present situation of enterprise merger and acquisition both domestic and abroad, the paper aims at, describes and classifies the risks faced by enterprise merger and acquisition, and then stands on the side of the main players involved in mergence, through financial perspective, by way of due diligence, simply analyses the present situation, types, causes and preventive measures of the more prominent financial risks, and presents several suggestions and comments to improve preventive measures in this field.Under this background, this paper combines the mathematical analysis of 2013 domestic enterprise merger practice, practice and research to current situation of domestic and foreign enterprises merger analysis as the foundation, in view of the enterprise merger and acquisition activity highlights in the financing of the payments process of Finance risk, through the synergistic effect of analytical comparison, and the development of prevention and control measures and the enterprise merger and acquisition improve the risk field expected new requirements for risk prevention and control in the field and puts forward several suggestions and opinions.This paper uses the method of summarized, combined with case analysis, using the synergistic effect theory to interpret in enterprise mergers and acquisitions financing payment activities of the finance risk and prevention measures.The innovation point lies in: This paper enable dynamic discovery of thinking, combined with the influence of synergistic effect, on financial risk analysis from the vertical and horizontal section compares the financing and payment links in merger and acquisition of enterprises, on the basis of this, the financial risk integration practice in the enterprise merger and acquisition activity, put forward more cut M & a practice guiding risk preventive measures.