M & A Financial Risk Control
As a capital operation, corporate mergers and acquisitions along with the emergence and development of commodity economy has experienced from lower to higher development process. Mergers and acquisitions can effectively reduce the barriers to enter new industries, access to the target company’s core technology, sales network, management, brand and human resources and other special assets of enterprises low-cost, low-risk expansion and diversification, improved market share rate and the industry concentration, economies of scale strategy, which is considered to be the core competitiveness of enterprises to obtain a strategic tool. However, M & A is also a risky investment activities in the target company selection, capital raising, operational phase and the whole process of allocation of investment return are accompanied by uncertainties, these uncertainties to the entire M & A huge risk. To mergers and acquisitions to achieve the national economic structure and optimization of state-owned assets to ensure the normal conduct of M & A activity, improve investment efficiency, we must attach importance to the acquisition of the risks, especially financial risk estimation and prevention.
1. M & dynamic control of the content of financial risk
Currently, the academic definition of acquisitions, and financial risk is no uniform understanding, I believe that first and foremost a mergers and acquisitions investment behavior, and behavior is a financing, investment and financing decisions jointly affect the financial situation of the enterprise after the merger. M & A process, from pre planning to project end, the takeover proposal and the environmental conditions will often be some changes, large or small.
2. M & A Financial Risk Dynamic Control System of the
Based on the above analysis, I believe that the financial risk of building a dynamic M & A risk control system, combined with their own characteristics, in turn divided into risk identification, risk assessment and risk prevention aspect, that is, the risk of engaging in M & A front, matter, after the whole process Tracking reflect, to seek merger and acquisition behavior of the financial risk control optimization. M & A dynamic risk control financial risks can be divided into four steps system:
First step in developing acquisition strategies and access to relevant information.
The second step, identifying M & A financial risk.
The third step, evaluation of mergers and acquisitions of financial risk.
The fourth step is to prevent acquisition of financial risk.
3. M & A financial risk prevention
(1) determine the reasonable objectives and M & M
(2) improve the target company valuation and evaluation system
(3) expand financing channels to ensure the rationalization of the financing structure
(4) The diversification of payment of M