Financial Risk Research Of M&A Between Hebei Steel Group And Sartid Steel Enterprise

Since the 20 th century,the trend of the world's iron and steel enterprises mergers and acquisitions has become increasingly active,transnational merger and acquisition has become a powerful trend,spread all over the world.They use a variety of forms,increased the enterprise organization structure adjustment,to adapt to the new requirements of economic development.Through a series of mergers and acquisitions,integration of resources in order to achieve more economic production mode,a more reasonable division of professional and geographical layout,form a powerful competitive enterprise group,in order to obtain a bigger development throughout the world.China's iron and steel industry also gradually entered the wave of mergers and acquisitions.But in recent years,China's steel industry faced with excess capacity,capital pressure;And optimize the economic structure requirement and urgently need to change the low industrial concentration,iron and steel industry the industry status of development of the small profit;Momentum transformation requires the iron and steel industry technology must be improved;New the severe environmental and aggravated the environmental stress in the steel industry.In the face of these challenges,mergers and acquisitions become one of the effective solutions.But there is a big financial risk of mergers and acquisitions.Many companies in mergers and acquisitions,has failed to do good to prevent financial risks,eventually lead to the failure of the merger.Partly because of the m&a pricing is too high,while others are failing to merger integration make specific planning,finally makes the contradiction between enterprise after the merger,development level has amounted to less than expected.So for m&a financial risk,China's iron and steel enterprises should be how to prevent and control financial risk.In this paper,on the basis of literature review and theoretical research,this paper introduces the iron and steel enterprises mergers and acquisitions is the trend of the current society and merger and acquisition are faced with the types and the causes of the formation of financial risk,and then according to the theory,analyses the event that Hebei Steel Group mergers and acquisitions Sartid Steel Company.Analyzed the case of mergers and acquisitions and the causes of financial risk,and analyzes the financial indicators before and after m&a,used to reflect the prevention effect of m&a financial risk.Finally from the successful m&a case,obtained for some revelations of the m&a financial risk prevention measures,also put forward some suggestions for cases.Hope with the help of a specific case to provide some references for the enterprise to prevent m&a financial risks.