The Financial Risk And Coping Strategy Of Mergers And Acquisitions Of Our Country’s Ship Industry

Ship industry,which has a long history in our country is an important part of national economy,it provides technology and equipment for national defense construction,marine transportation and marine development.Ship industry in recent years can be described as explosive growth,but now is in the development of the trough.The outbreak of the financial crisis in 2008, ended a ship market nearly 10 years of sustained high growth, and led to the crash.The development of the ship industry has encountered bottlenecks,such as decline in market demand, shipping industry structural overcapacity, the nervous company capital, and weak technological innovation capability.Therefore,integration of resources through mergers and acquisitions to improve industrial concentration,to adjust the layout optimization of marine industry productivity,and to improve industrial concentration is the inevitable trend.<Ship industry to speed up structural adjustment and to promote transformation plan(2013-2015)>is made by the State Council and it especially emphasizes that the government need to strengthen the integration of existing shipbuilding resource currently,for example,encourage the shipping enterprises to do the merger so that they can realize the resources integration and sharing and avoid the overcapacity situation.What’s more,it can provides material basis for the ship industry and improve the core competitiveness of shipping enterprise market.Through a variety of researches and analysis,we can find that risk is everywhere in the process of merger and financial risk is important to the success of the enterprise mergers and acquisitions.Therefore, the research on the financial risk of mergers and acquisitions of shipbuilding enterprises contributes to taking effective measures to prevent risk and improving the success rate of shipbuilding enterprises mergers.This analysis combined with the current situation of ship industry,using literature analysis, industry analysis,and case analysis three aims to research and analysis the financial risk and related issues of ship industry m&a.This paper summarizes the merger theory first,including merger concept,merger risk and classification,merger financial risk concept and classification,and it also analyzes and discuss the reason of financial risk.It introduces the merger financial risk second,mainly including the choice of target enterprise,value assess risk,financing risk,payment risk and financial conformity risk.Then it uses profession analytic method to analyze the development status and merger situation of China’s shipping industry,and the characteristics and motivation of the merger.Next,it proposes the specific measures of prevention and control which aim at the financial risk.Last,it analyzes thefinancial risk in merger process by the cases of China’s shipping merger and it provides a mirror for shipping industry’s merger in the future.