Research On SG Co.,Ltd Merger And Acquisition Risk And Its Prevention

From the historical development of the current market experience,M&A is a way for enterprises to grow rapidly,can give enterprises better development space and development opportunities,but at the same time M&A is also accompanied by great risks.Since the 90s of last century,the number and scale of M&A has been on the rise because of the global economic integration and industrial upgrading.However,in the complex and changeable economic environment,M&A is not simple merger,reorganization or split between enterprises.Deducing competition,in the face of economic globalization,expanding market share,M&A activity is often completed capital accumulation in a short period of time,the formation of scale economy and the construction of a large sales network or quick access the new industry and get the best way to quickly achieve a certain scale benefit.But M&A risk is easy to bring business hit,or even devastating blow,so in the process of M&A,we must do a good job on the risk of M&A management,make the greatest efforts to avoid disadvantages and prevent the occurrence of risk,or Is to minimize the adverse impact of M&A risks on the enterprise.This article is divided into five parts.The first part of the article describes the background and significance of the topic,domestic and foreign research literature,as well as the purpose and content of the research,the methods and path of the research.The second part introduces the theoretical analysis of M&A and M&A risk;The third part studies the identification and analysis of M&A risks by taking SG Co.,Ltd M&A of small and medium-sized iron and steel enterprises in Fujian Province.The part also takes M&A of SG Co.,Ltd as an example to analyze the choice of M&A object,M&A method,valuation method,payment method,financing method and risk aversion method.The fourth part,based on the theory and practice,puts forward some suggestions on the risk prevention of M&A in china.The fifth part summarizes the research of the whole article,and analyzes the shortcomings and the content that should be studied continuously.The article systematically describes the whole process of SG Co.,Ltd M&A through the combination of theory and examples.Integrated application of qualitative and quantitative analysis tools,the article also analyzes SG Co.,Ltd M&A risk identification,analysis and response in different stages.It is a realistic significance to enterprise M&A risk management in our country.