The Analysis for Financial Risk of Enterprise Merger and the Study of Control Measures

Facing with the globalization trend in economy and increasing innovation of information technology,multinational corporations turn to be more engaged in the fifth trend of mergers and acquisitions. Both business organizations and corresponding industry structures are affected by the continuous business activities in mergers and acquisitions. The financial practice is the core throughout the whole process, and it could determine the effectiveness of mergers' fulfillment. Increasing number of domestic companies in China had also started to involve in mergers and acquisitions locally and internationally, more importantly, they are no longer in the role of being merged, instead, they are turning into acquirers. Thus, this paper is going to study the financial risk facing by mergers and acquisitions, and further to figure out the corresponding measures in controlling and preventing those risks.