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1、Causes and Control of Finanl Risk inMergers & Acquisitions,Zongsheng LiuAbstract:The mergers & acquisitions of entrises are the managementactivities with high risks which exist through thewhole M&A activity, and thefinanl risk is the important influencing factor to impact the M&A. Byyzing ofvalue ev

2、aluation, financing activity and finanl risk in M&A, it is obvioustM&A is a property rights trading with high risk and the finanl risk is the importantfactor with the highest risk. Therefore, the before-event control and the mid-eventcontrol should be appd to prevent the finanl risk, and the after-e

3、vent controlshould be used to reduce the finanof M&A.l risk, and accordingly enhance the survival rateKeywords: Mergers & AcquisitionsCausesControlFinanlmotivationsFinanl risk1. Definition and causesysis of finanl riskt the finan&Al crisis happensThe finanl risk&A means thesibilityin certaerm becaus

4、e of the financing for M&A or the debts occurring&A. Anegrated M&A activity includes the selection of objective entrise, the valueevaluation of objective entrise, the feasibilityysis of M&A, the raising ofM&A capitals, the confirmation of pricing mode, and theegration after M&A.These parts all may p

5、roduce risk, and the finanfollowing aspects.l risk&A mainly comes from1.1 Finanentrisel risk when the party of M&A evaluates the value of objectiveThe base of M&A is the value evaluation of the objective entrise. At present,the value evaluation of the objective entrise in China is the evaluation acc

6、ordingthe basic principle and method procedures of the asset evaluation, and its rationality is impacted by various factors.1.1.1 Imperfect evaluation index system&A, a series of effective evaluation index system are deficient in China, and most relative regulations are principled without operation

7、values. The humansubjectivity in M&A could largely influence the M&A, so the M&A can not beimplemented according to the value rule of the market, and the problem of “eroofse assets” is hard to avoid, or to avoid the eroof se assets, the value of theobjective entrise is evaluated too highly to implem

8、ent the M&A.1.1.2 Lackinghe agencyanization serving for M&ABecause the independent agencyanization which can provide exactinformation and consulion service for M&A, the information costs of both partiesof M&A can not be reduced, and the behavior of M&A can not be guided and supervised, and the trani

9、on cost and risk will be increased certainly.1.1.3 Too much Some localdisadvantageous enternmental controls&Aernments force “matching” two entrises, and even merged theriseo the advantageous entrise by unreasonable tradingprice and finally dragged the feet of the advantageous entrise. The party of M

10、&Awas forced to accept not only the losses and debts of the disadvantageous entrise,but also the employees in the disadvantageous entrise. Theerference of theernment not only could make the trading price to deviate the value seriously, butbrought large management burden to the party of M&A.1.2 Finan

11、l risk brought by financing activity of the party of M&A1.2.1 Influence of different financing modesThe financing of M&A generally includes theerior financing and the exteriorfinancing. Theerior financing is the own capitals of the entrise, and thesecapitals can be freely dominated by the entrise, a

12、nd the financing prere is small,and nothing must be repaid, so the zero financing cost can effectively reduce thefinanl risk. But new finanl risk will be produced when only depending on theerior financing. On the one hand, because teral scale of Chientrisesis small and the profiting level is low, it

13、 is hard to quickly raise needed capitals onlydepending on their own accumulations. On the other hand, if theerior financing islargely adopted to occupy the precious flow capitals of the entrise, the quickreaction anptability of the entrise for the change of exterior environment willbe reduced, and

14、once the own capitals of the entrise are used for M&A, andrefinancing will be difficult, which will endanger the normal management of theentrise and increase the finanl risk. The exterior financing means raisingcapitals by exterior channels, and it includes the equity financing and the debtfinancing

15、. The equity financing has its limiions., China requires the stockfinancing rigidly, and long financing time makes against the chance of M&A. Second,the stock financing will inevitably change the equity structure of the entrise, anddilute the control right of big shareholders to the entrise, even th

16、e big shareholdersof M&A may lose the equity of the entrise.Comparing with the equity financing, the cost of the debt financing is lower, butin the present China, some entrises have higher debt rate and limited loaningability, and even the debt financing icsful, the entrise after M&A will be ona sti

17、cky wickethe competition because of too much debts and deteriorated capitalstructure. And when the debt is at term, the repayment of capitals anderests willincrease the finanl burden of the entrise, and improper arrangement will makethe entrise to geto the finanl crisis.1.2.2 Whether the finanl mode

18、 accords with the motivations of M&AThe M&A motivations here only meant the entrise of M&A wants to holdthe objective entrise temporarily or in a long term. If theof M&A istemporary to hold the objective entrise, and resell it aftroper alteration to earnthe price difference, the quiarge short-term c

19、apitals should be invested. Here, theshort-term loan mode with lower capital cost can be selected, but the repaymentburden of cost anderest is heavy, and the entrise is easy to geto the finanlcrisis because of improper arrangement. But if the buyer wants to hold the objectivecompany in a long term,

20、the concrete financing mode of M&A capitals should be confirmed according to the capital structure and the requirement of sustainablemanagement of the objective entrise. Therefore, the M&A entrise shouldmaain normal operation capitals, match the investment return terms with the loansorts, and reason

21、ably arrange the capital structure aiming at the debt repayment termsof the objective entrise.1.3 Finanl risk&AThough M&A is a short cut for the entrise to enlarge the scale, enteroother industries or enlarge the market share,but in M&A, because the managementconcepts, theanization structure, the ma

22、nagement system and the finanloperation modes of the M&A entrise and the objective entrise are different, the friction will occur inevitably, and if it had not been treated properly, not only theprofit of M&A will be neutralized, but also the competitive advantage of the originalentrise will be corr

23、oded. Espelly when the buyer lacks in experienand theinformation of seller and buyer are asymmetric, or the sellerentionally orunconsciously hides some very important news for the buyer which has not sufficientapperceiving ability, the buy may taste the “bitter result” in theegration after M&A.2. Co

24、ntrol of finanl risk&AThe risk control means those endeavors which can minimize the degree andfrequency of the risk, and it generally includes the preventing mode and the lighteningmode. Theention of t preventing is to reduce thesibilityt risk happens, andtheention of lightening is to lighten the de

25、gree of risk loss, and the risk preventingincludes the before-event control the mid-event control, and the risk lightening is theafter-event control.2.1 Before-event control of finanl risk in M&A: carefully select theobjective entrise of M&A2.1.1 Confirming the strengndition of the party of M&AExcep

26、t for emphasizing the value evaluation of the objective entrise, theentrise should objectivelyyze and evaluate its own strength, espelly thecapital strength, and reduce the unpractical and blind optimism and aggrandize itsown strength. In addition, it should realizet M&A is not only a kind of strate

27、gicbehavior, but also a kind of economic behavior, and the entrise should follow theprinciple of marketilization, not annex some entrises with heavy debt burdens,supers and historical burdens to obtahe political capitals for some leaders in China,which will make the entrise after M&A to get in embar

28、rassed situation. Leadersshould make decientrise.s rationally from theition to promote the development of the2.1.2 Reasonably evaluating the value of objective entriseThe asymmetric information of the two parties of M&A is the essential cause toproduce the risk of value evaluation of the objective e

29、ntrise, so the entrise ofM&A should try to avoid hostile M&A, and carefully check and evaluate theobjective company before M&A. The buyer can retahe investment bto plan therise, and e and thedevelopment strategy of the entrise, capture the objective entcomprehensivelyyze the industrial environment,

30、the finanl smanagement ability of the objective entrise, and reasonably predict the futureprofit ability of the objective entrise. The value evaluation of the objectiveentrise based ont will be close to the real value of the objective entrise andreduce the evaluation risk. In addition, the different

31、 value evaluation methods can beadopted to evaluate the same one objective entrise, and different primay beobtained. The buyer should decide the proper evaluation method according to the motivation of M&A, such as whether the objective company continually exists afterM&A, and whether the information

32、 of materials ifficient.2.2 Mid-event control of finanl risk&A2.2.1 Adopting various financing measuresWhen the entrise makes the financing decis, it should actively developdifferent financing channelch as the equity financing, the debt financing, the leverpurchase financing, and the buyer financing

33、 to implement M&A and push thebination andegration once the value of the objective entrise is confirmed,and control the capitals structure in a relatively reasonable range. Under this premise,the capital coming and the term structure of the debt can beyzed, and thefuture cash inflow and the debt rep

34、ayment of the entrise can be comed andmatched according to the term structure, and the flow weak poof future capitals ofthe entrise can be found out, and then the terms and the sum structure of long-termdebt and short-term debt are adjusted to minimize the capital cost.2.2.2 Adopting the mode of mix

35、ed paymentThe ent combinationown finanrise should be established in long-term, and adopt differentch as cash, debt and equity for the payment mode, combining with itslsus. If the buyer predictst the M&A could obtain large profitspace by effectiveegration, and it can adopt the mixed payment mode givi

36、ngpriority to debt payment, so the tax-offset could reduce the capital cost. And if thebuyer hafficient capitals and stable cash flows, and the cost of stock iance islarge or the stock value of the entrise is undervalued in the market, the mixedpayment mode giving priority to own capitals can be sel

37、ected. If the buyers finanlse is not good, and the asset debt is high, and the asset flow of entrise is bad, theshare exchange mode can be adopted to optimize the capital structure. Therefore, theentrises in M&A should deeply develop the mixed mergers, and study to adoptmultiple securitiepayment.ch

38、as company bond, convertibond and warrant for combined2.2.3 Adopting flexible mode of M&A to reduce the cash payoutThe maodes of M&A include following sorts.(1) M&A of mortgage. The objective entrise will be the mortgage to applyquiarge loans to the bfor M&A.(2) M&A of debt-undertaking and stock-con

39、trol. When the debts of the objectiveentrise mainly come from bloans and they are insolvent, the party of M&A canconsult with the bto independently undertake the repayment obligation, and thebshould allow the party of M&A to transfer the debt to the capital stock of theobjective entrise as the capit

40、al, and accordingly achieve the holding se.(3) M&A of stock-melon-cutting. When the asset of the objective entriseexceeds its debts, the party of M&A needs not buy the surplus asset of the objectiveentrise, but should consult with the owner or the asset management institution ofthe objective entrise

41、, and add the surplus asset of the objective entriseo theparty of M&A by the stock form, and share corresponding profit according to theshare.2.3 After-event control of finanl risk&A2.3.1 Establishing the finanl alarm management systemheegration term of M&A entrises, because the frequency of finanlf

42、luctuation and finanl risk happen is higher, so the finanl crisis of the entrisesof M&A easily occurs. Therefore, for the survival and development of the entriseof M&A, the entrise of M&A should properly establish scientific finanl alarmmanagement system to take precautions. The finanl alarm managem

43、ent system ofthe entrise of M&A is to take the finanl risk and finanl crisis induced by thefinanl management mistakes and the finanl pros fluctuationheegratedterm as the research object, and supervise them in order to ensure the gooddevelopment of the management se of the entpre-control and continua

44、lly remedy bad finanrise, and identify, evaluate, predict,l development tendency.2.3.2 Entrise divi: removing and separationThe removing meanst the entrise lends some existingpany,department, product production line and fixed asset to other companies, and returncash or portfolio. The separation mean

45、s the company distributes the share of thepany owned by the according to certain proportions,pany from thepany to shareholders in thepanyand accordingly separates the management of thepany in law andanization.he separationpros, the cash tranion will noppen, and the transfers of equity and controlrig

46、ht to the third party dont exist, and the present shareholders still keep their rightsto thepany and the separatedpany. The unadvisable M&A willrise, and the removing and separation canproduce disastrous consequent to the enthelp the entrise to remedy false annexation and reduce the finanl risk of M

47、&A.heegration pros, when the situation is largely different with theipationand the finanl se is not stable, such as the performance of the objectiveentrise is bad, the party of M&A can not burden theerest, and the stock price ofthe company falls, the entrise can remove or separate thispany.并购中的财务风险控

48、制的原因,摘要:企业并购是存在高风险的贯穿整个并购活动的管理活动,其中财务风险是重要的影响,通过价值评估分析,以及并购中融资活动和财务风险，显而易见,并购是一个高风险的交易,财务风险是具有最高风险的重要。因此,事前控制和事中控制应防止财务风险,和事后控制应用于降低财务风险,从而提高了并购中的存活率。：并购财务财务风险成因 控制1.对企业并购财务风险定义和产生原因的分析企业并购财务风险指的是金融发生的可能性，在一定期限内由于融资并购或因并购发生的。一个集成的并购活动,包括目标企业的选择,目标企业的价值评估,并购,并购的筹集，定价模式确认的可行性分析，和并购后的整合。这些都可能会产生风险,财务风险

49、的并购主要来自以下几个方面。1.1 客观评估并购方企业价值的财务风险并购的基础是目标企业的价值评估。目前,目标企业的价值评估是根据资产评估的基本原理和方法的程序的评价，以及其合理性是受各种的影响。1.1.1 不完善的评价指标体系在并购中，一系列有效的评价指标体系,缺乏相关规定,大多数是没有操作价值原则。人类的主体性在并购上可以很大程度的影响并购,所以并购不能根据市场价值规则的实施，以及“国有资产流失”是,或为避免国有资产的流失，对目标企业的价值评价太高而难以实施并购。1.1.2 缺乏中介机构服务于企业并购因为独立机构可为并购提供准确的信息和服务，并购双方的信息成本无法降低,且并购行为无法被引导

50、和监督,那么交易成本和风险当然增加了。1.1.3 在并购中过多的一些地方强制“匹配”两家企业,甚至是通过不合理的交易价格合并了不利的企业到优势企业去，并最终拖累企业有利的脚。并购仅被迫接受不利企业的亏损及,而且被迫接受不利的企业员工。通过并购方的融资活动带来的财务风险不同融资方式的影响并购一般包括融资和外部融资。融资是企业自己的,而且这些可以由企业可支配，金融压力小,并没必须偿还的,所以零融资成本可以有效地降低财务风险。但新的财务风险将只取决于融资。一方面，由于中国企业普遍规模小、水平低,只靠自身的积累很难迅速筹集所需。另一方面,如果融资主要是通过占据企业的宝贵的资本,企业的快速反应和适应性变

51、化的外部环境将降低,一旦企业的自有用于并购，那么再。外部融资是指由外融资将是的，这将危及企业的正常管理和增加部筹金,它包括股权融资和融资。股权融资有其局限性。首先,中国需要严格融资,长时间融资不利于并购的机会。第二,融资将不可避免地改变企业的股权结构,并且削弱大股东对企业的控制权,甚至并购的大股东可能失去企业的股权。与股权融资相比,融资的成本较低,但在目前的中国,一些企业有较高的比率以及出借能力有限,甚至融资成功,并购后的企业将因为太多的和的资本结构在竞争中陷入泥淖。当到期时,偿还资本和利益会增加企业的财务负担,安排不当会使企业陷入金融。1.2.2 金融模式是否符合并购的这里的并购只意味着并购

52、的企业想要保持企业暂时或长期目标。如果并购的目标是暂时的目标企业,并适当改造后转手赚取差价，那么应该投入相当大的短期资本。在这里,短期模式可以选择较低的资本成本,但成本和利息的还款负担很重,并且企业因为不适当的安排,很容易陷入金融。但是如果买方想要长期持有目标公司，并购资本的具体融资模式应根据资本结构和目标企业的可持续管理的要求来确认。因此,并购企业要维持正常的运转,投资回报与类型匹配,并合理安排针对目标企业的还款条件资本结构。1.3 并购财务风险虽然并购是一条捷径,为企业扩大规模,进入到其他行业或扩大市场份额，但在并购中，因为管理理念,组织结构,管理制度和金融并购企业和目的企业操作模式是不同的,摩擦不可避免会发生,并且如果它没有被妥善处理，不仅会抵消并购的利润,而且还会腐蚀原有企业的竞争优势。尤其是当买方缺乏经验,的信息不对称,或卖方有意或无意识地隐藏了一些非常重要的消息,买方没有充足的感知能力,可品