Financial Risk Of Enterprises' M&A And Its Responding Research

Enterprises' M&A is an important form that enterprises obtain all the resources that benefits their own developments through the market,and expand market share constantly,makes enterprises to take the road of diversified development.However,as a complex investment,M&A also contains huge risks.Mergers and acquisitions involve huge sums of money to pay,and financial activities of mergers and acquisitions are throughout the whole process of design and implementation,so the financial risk becomes the important influence factor that affects the success of enterprise mergers and acquisitions.Financial risk of the enterprise mergers and acquisitions refers the possibility that the enterprise may face merger fails after the market value increases.Scientific researchs and analysis on types of financial risk of mergers and acquisitions,and effective countermeasures that proposed for financial risk of mergers and acquisitions have important guiding significance on enterprise mergers and acquisitions,are beneficial to the development of enterprise.This paper based on relevant theories of enterprise M&A financial risk,using the literature research method,in combination with theory and case study method,take the case of C Company merge J Company as the research object.We first introduce domestic and foreign research status about M&A financial risk,carry on the review of literature of domestic and foreign scholars on M&A financial risk,then introduce the theory of M&A and its financial risks as the theoretical basis of the later analysis.This paper uses the form of case introduced,introduces the concrete case of C Company merge J Company,through the financial data before and after the merger of C Company,thus analyzes the effect for C Company caused by this merge case.And then analyzes the financial risks of C Company from the aspects of pricing risk,financing risk,payment risk and financial integration risk after the merge,and summed up the ways of innovation,prediction and responses to risks of C Company,finally get the enlightenment of the responses of financial risks in enterprises' M&A.The research results show that the causes of M&A financial risk are various,and always exist in the whole process of M&A,so enterprise should take some effective measures timely that apply to itself to cope with the M&A financial risk,in order to improve the success rate of M&A.