Research On The Risk Analysis And Control Of M&A

Since the 1990 s,with the acceleration of the process of economic globalization,Western developed countries set off a wave of the fifth round of mergers and acquisitions around the world.At the same time,China's domestic M&A activities also surged.At present,mergers and acquisitions has become China's enterprises an important strategic means to grow and participate in international competition.However,the current domestic M&A activity is still in the early stages of development.The failure rate of mergers and acquisitions is higher,due to the lack of a unified,standardized understanding of this new thing,the lack of scientific theoretical guidance.This paper conducts an in-depth study on the identification and control of M&A risk in China,which can promote the enterprises to take corresponding measures to better prevent risks and improve the success rate of M&A.On the basis of reviewing and summarizing the data of M&A activity at home and abroad,this paper uses qualitative analysis and quantitative analysis to establish the correct concept of risk perception by using basic merger risk theory.This paper establishes a life cycle risk identification and analysis system based on HHM,and makes a comprehensive analysis of the risk of M&A throughout the activity cycle.Based on the reality of M&A,this paper uses the multi-level fuzzy comprehensive evaluation model to evaluate the pricing risk,financing risk,payment risk and integration risk of Shanghai HX M&A.At last,the author puts forward a set of relatively complete enterprise practical and feasible enterprise M&A risk control strategy and risk prevention measures for three stages: the preparation stage,the implementation stage and the follow-up stage of M&A.The results of this paper show that the most important influencing factors in M&A are to analyze and control various risks and formulate effective risk control strategies so that the whole M&A risk is controlled at a lower risk level.On the one hand,this paper can provide theoretical support for the enterprises and on the other hand,it can guide the risk analysis and control of M&A in similar enterprises.