Research On Risk Management Of H Mining M&A L Mining Project

In recent years,with the gradual rise of the iron ore market price,H Mining has carried out a number of mergers and acquisitions in order to seek further development.The merger and acquisition of iron ore enterprises is a high-risk investment activity,involving resource risk,legal risk,financial risk and many other aspects.Financial risk,in particular,has gradually become one of the most important risks in the merger and acquisition projects of iron ore enterprises.How to effectively reduce the risk of M&A project is very important to the success of M&A.Taking H Mining’s M&A of L mining project as the research object,this paper analyzes the motivation of M&A and the financial situation of both sides of M&A by reviewing relevant theories of enterprise M&A risk,collecting and sorting out relevant materials in the early stage of the project,and simulating the balance sheet and solvency of H Mining after M&A.Mainly combined with the actual situation of the enterprise,the main risk types of the merger project were sorted out,including the merger operation risk,asset evaluation risk,natural resource risk,financing risk,etc.The main risk evaluation indexes of the merger of H mining industry and L mining industry were extracted by using the analytic hierarchy process,and the weight of each level of risk index was calculated,and then the fuzzy comprehensive evaluation method was used for risk assessment.The fuzzy comprehensive membership matrix was constructed and the risk levels were determined according to the maximum membership principle.Through analysis and research,it can be concluded that the four risk types of H mining merger and L mining project have different levels of risk levels.Therefore,the principle of lowest cost and priority of benefit should be followed in the formulation of countermeasures.In improving the construction of its own risk management system for M&A projects,H Mining should focus on the role of risk management,timely prevent and resolve the operational risks found in the process of due diligence,strengthen the capacity building of its M&A team,and better cooperate with external institutions.It is necessary to attach great importance to the natural resource risk and asset evaluation risk which are prominent in mining merger and acquisition,and to fully understand the actual situation of mining land acquisition,so as to prevent the emergence of "zombie mines" with mining rights but no land.At the same time,adhere to the effective risk control in the process of merger and acquisition,fully clarify the operational risks of the target company before merger and acquisition,and accurately formulate the financing plan for merger and acquisition transactions and project construction.