Research On Financial Risk Identification And Control Of M&A

As the name implies,M&A refer to a combination of at least two enterprises or independent economies into one,resulting in a synergistic effect which makes the total value far greater than that of each enterprise before the merger.It is an important business strategy to break through inherent barriers when the modern business organization develops to a certain level,assuming that effectively used,which can maximize the release of capital.On the one hand,to inject fresh blood into the existing business model and get "focus effect";On the other hand,the scale effect can be realized in a short term by means of rapid capital export and the enterprise could achieve the long-term strategic development goal.Although the number of M&A in China is increasing,the failure cases are not uncommon,most of which are due to neglect,or do not handle properly the financial risks of M&A.On the background of China's merger acquisition development process and risk management with the urgency,the title of paper is financial risk identification and control in M&A.Therefore,this paper studies the financial risks,according to a logic chain from the risk identification to risk assessment to risk control.First of all,reviewed the domestic and foreign research to understand financial risks of corporate M&A in the recent years.The second is theoretical analysis,from M&A to the financial risk of M&A to emphasize the necessity of financial risk management.On the basis of literature review and theoretical analysis,an enterprise M&A financial risk evaluation index system was set in China,the main methods involved in system construction were analytic hierarchy process and comprehensive fuzzy evaluation method.Then,using the evaluation method to assess the case of SSD Corporation to verify the effectiveness of appraisal system.Finally,learned from experience and lessons and provided suggestions for dealing with the financial risks of M&A.