Research On Financial Risk Management Of M&A

Corporate M&A is a major form of capital operation and an important way for companies to expand rapidly.Since the human economy and society entered the industrial society,with the advancement of science and technology,the promotion of productivity,the socialization of production,and the transformation of enterprises to specialization,large-scale,and centralized,corporate M&A activities have emerged from time to time.The global economy has undergone dramatic and profound changes.Since the end of the 19 th century,the United States has set off five waves of M&A.The United States adjusted its industrial structure through five waves of M&A and established the US's dominance in the global economy.Since the implementation of reform and opening up in China,M&A has also developed from scratch.In the 21 st century,with the transformation of the economy,the relaxation of supervision and other factors,the number and scale of domestic M&A has increased rapidly.However,compare to the huge number of M&A,the success rate of corporate M&A is relatively low.Exploring its underlying causes,M&A is a special kind of investment behavior,which is complex and comprehensive.High-return is accompanied by high-risk.Corporate M&A is like a double-edged sword,which brings attractive benefits,but also brings huge risks.Among them,the financial risk of M&A is a special one in M&A.Its particularity is reflected in the financial activities of M&A,which will directly generate financial risks.Other risks in M&A will eventually affect the financial status of the company and become financial risks of the enterprise.It is particularly important to identify the financial risks of M&A and to actively manage them.This paper chooses M&A financial risk management as the research topic,introducing typical cases to analyze how to effectively and properly manage the financial risks in M&A,to reduce its occurrence probability and potential loss.Firstly,the relevant literatures on financial risk management of M&A are sorted,summarized,analyzed and reviewed.The research results of definition,classification,source,identification,evaluation and risk management of M&A financial risk management are reviewed.Then,the relevant basic concepts are defined,and the financial risk management of M&A is theoretically analyzed to lay a theoretical foundation for subsequent case analysis.Next,introduce the case of Shanghai Firstly,the relevant literatures on financial risk management of M&A are sorted,summarized,analyzed and reviewed.The research results of definition,classification,source,identification,evaluation and risk management of M&A financial risk management are reviewed.Then,the relevant basic concepts are defined,and the financial risk management of M&A is theoretically analyzed to lay a theoretical foundation for subsequent case analysis.Next,introduce the case of Shanghai Lai Shi M&A and pharmaceutical industry,introduce the situation of M&A enterprises' financial risk management in this M&A,and finally,based on the research of this paper,draw conclusions and put forward corresponding suggestions for M&A financial risk management.,introduce the situation of M&A enterprises' financial risk management in this M&A,and finally,based on the research of this paper,draw conclusions and put forward corresponding suggestions for M&A financial risk management.However,this article is only based on the case of Shanghai RASS and Bang He Pharmacy.Although it is representative,the sample range is limited,and the conclusions and recommendations are not necessarily universal.In addition,the data collected is limited by the limited channels and research time constraints,the paper still has many shortcomings and needs to be further improved.