Research On The Financial Risk Prevention And Control Of Overseas Merge And Acquisitions Of T Company

Since the 20 th century,with the rapid development of global economic integration,enterprises are facing to the domestic competitions,as well as foreign challenges.In order to obtain the significant development space in the fierce competition environments,more and more enterprises entered into the field of international business,of which overseas merger and acquisition optimizes resources allocations in the world wide.In overseas M&A activities,the integration of finance holds a critical position.As a listed and a SOE,T company has always attached great importance to the financial risk controls during M&A,but it still encountered many issues in the actual work due to lack of a integrated and scientific system to guide the work of financial risk management.It is essential to indentify the risks and analyze on the relevant reasons of which exists in the financial management of M&A and find out a suitable prevention and control system of financial risk for the characteristics of its own.With the above backgrounds,this paper took T company as the research object,and studied deeply on its existing financial risk prevention status in order to find out the problems and reasons and design a applicable financial risk prevention and control system and seek out the breakthrough point of financial risk management and integral development for T company and other similar listed and SOE Chineseenterprises.This paper mainly adopts literature analysis method and practical investigation.With the guide of financial risk prevention and control of science and risk theory,this paper adopts effective management tools to construct a set assessment,prevention and control system of financial risk in the overseas mergers and acquisitions.First,this paper reviews the related financial risk theory,and analyzes and summarizes the risk prevention experience and risk control experience in China and western in order to prepare for the following research.Secondly,the paper analyzes the major financial management risks in the process of overseas mergers and acquisitions of T company and analyzes the reasons casuing the financial risks from various dimensions.Finally,according to the specific forms and the reasons for the formation of financial risk in the overseas M&A of T company,this paper analyzes the risk prevention and control countermeasures for each category of financial risks.Through this study,it is found that there exist various financial risks in T company and the main risks are financial reporting risk,exchange rate / interest rate risk,cross border treasury management risk,business plan / business performance risk,financial personnel shortage risk.The root reasons of these risks are that the enterprise is lack of short term and long term strategic planning,low speed of integration,insufficience usage the results from pre-acquisition due diligence,imperfect corporategovernance in post-acquisition stage and insufficient expectations on the difficulties of multinational management and cultural integration,etc.In addition,the external effects and the lack of financial personnel of B company and T company are also reasons of the problem.According to the problems and reasons,this paper designed programs of financial risk prevention and corresponding specific measures for internal and external reasons under the guidance of the overall goals and basic principles of M&A.