Financial risk control in M&A
M&A plays a significant part in capital operation activities. M&A is not only important way for capital expansion,but also effective method for resource allocation optimization. However,as complicated capital operation activity,M&A may induce considerable risks.Statistics show that,about 70％of MNCs M&As end up as failures. Risks that arise during M&A activities may include but not limited to financial risks, legal risks, ethical risks, market risks and political risks, among which financial risks are the most conspicuous. Financial risks run through the course of M&A as key elements for the success and failure of it. Based on the M&A transaction process, financial risks can be grouped into 3 categories: decision-making risks before M&A(Strategic risk), implementation risks during M&A (Evaluation risk, financing risk and payment risk)and integration risks after M&A. Main tasks and characteristics in each step of M&A transaction are different, as well as the risk-driven factors, which interrelate and act upon each other. In the main part of the thesis, the author defines financial risks, and talks about in detail target-evaluation risks, financing and payment risks, and integration risks. Then the author digs into the factors inducing each type of risks, as well as the negative effects these risks would bring. At last, the author proposes feasible measures for risk avoidance and control, based on the financial accounting practices, and the combination of international experience and national conditions.
merger and acquisition financial risks risk control
WeiNa
Beijing Jiaotong University, Beijing, 100044, China
国际会议
烟台
英文
819-822
2010-08-06（万方平台首次上网日期，不代表论文的发表时间）