企业并购财务风险控制外文文献翻译2014年译文3100字Word文档格式.docx

企业并购财务风险控制外文文献翻译2014年译文3100字Word文档格式.docx

《企业并购财务风险控制外文文献翻译2014年译文3100字Word文档格式.docx》由会员分享，可在线阅读，更多相关《企业并购财务风险控制外文文献翻译2014年译文3100字Word文档格式.docx（9页珍藏版）》请在冰点文库上搜索。

FinancialriskcontrolofMergersandAcquisitions

Cornell

Abstract

M&

Aplaysasignificantpartincapitaloperationactivities.M&

Aisnotonlyimportantwayforcapitalexpansion,butalsoeffectivemethodforresourceallocationoptimization.Intheworldaround,manyfirmsgainedhighgrowthandgreatachievementthroughM&

Atransactions.Thecasesinclude:

themergerbetweenGermancompanyDaimler-BenzandU.S.companyChrysler,Wal-MarfsacquisitionforBritishcompanyADSA,Exxon'

smergerwithMobilandsoon.

Keywords:

Enterprisemergersandacquisitions;

Riskidentification;

Riskcontrol

1Riskinenterprisemergersandacquisitions

Mayencounterintheprocessofmergerandacquisitionrisk:

financialrisk,assetrisk,laborrisk,marketrisk,culturalrisk,macropolicyriskandriskoflawsandregulations,etc.

1.1Financialrisk

ReferstotheauthenticityofcorporatefinancialstatementsbyM&

AandM&

Aenterprisesinfinancingandoperatingperformanceafterthepossiblerisks.Financialstatementsistoevaluateanddeterminethetradingpriceinacquisitionofimportantbasis,itsauthenticityisveryimportanttothewholedeal.Falsestatementsbeautifythefinancialandoperatingconditionsofthetargetenterprise,andeventhefailingcompaniespackingperfectly.Whetherthefinancialstatementsofthelistedcompaniesorunlistedcompaniesgenerallyexistsacertaindegreeofmoisture,financialreportingriskrealityInaddition,theenterprisebecauseofmergersandacquisitionsmayfacerisks,suchasshortageoffunds,adeclineinmarginshasadverseeffectsonthedevelopmentofenterprises.

1.2Assetrisk

ReferstotheassetsoftheenterpriseM&

Abelowitsactualvalueortheassetsafterthemergerfailedtoplayaroleoforiginalandtheformationoftherisk.Enterprisemergerandavarietyofstrategies,someofthemareinordertoobtainresources.Infact,enterpriseassetaccountsconsistentwithactualsituationwhetherhowmuchhasthecanbeconvertedintocash,inventory,assetsassessmentisaccurateandreliable,theownershipoftheintangibleassetsiscontroversial,theassetsdisposalbeforedeliverywillbesignificantlylessthantheassetsofthebuyertogetthevalueofthecontract.Becauseoftheuncertaintyofthemergerandacquisitionofassetqualityatthesametime,alsomayaffectitsroleinbuyingbusinesses.

1.3Laborrisk

Referstothehumanresourcesoftheenterprisemergerandacquisitionconditionsaffectpurchaseenterprise.Surplusstaffandworkersofthetargetenterpriseburdenisoverweight,on-the-jobworkertechnicalproficiency,abilitytoacceptnewtechnologyandthekeypositionsoftheworkerwillleaveafterthemerger,etc.,aretheimportantfactorsinfluencingtheexpectedcostofproduction.

1.4Marketrisk

Referstotheenterprisemergeriscompleted,thechangeofthemarketrisktotheenterprise.Oneofthepurposesofmergersandacquisitionsmaybetotakeadvantageoftheoriginalsupplyandmarketingchannelsofthetargetenterprisesavenewinvestmententerprisedevelopthemarket.Undertheconditionofmarketeconomy,theenterpriserelianceonmarketismoreandmorebig,theoriginaltargetenterprisethepossibilityofthescopeofsupplyandmarketingchannelsandtoretain,willaffecttheexpectedprofitofthetargetenterprise.Fromanotherpointofview,thelackofaharmoniouscustomerrelationship,atleasttoacertainextent,increasethetargetenterprisemergersandacquisitionsafterthestart-upcapital.

1.5Culturerisk

Referstowhetherthetwoenterpriseculturefusiontotherisksofmergersandacquisitions,twobroadanddeepresources,structureintegrationbetweenenterprises,inevitablytouchestheconceptofcorporateculturecollision,duetoincompleteinformationordifferentregions,andmaynotbeabletoorganizationalcultureofthetargetenterprisebecometheconsensusoftheright.Iftheculturebetweentwoenterprisescannotunite,memberswillmaketheenterpriselossofculturaluncertainty,whichgeneratesthefuzzinessandreducedependenceonenterprise,ultimatelyaffecttherealizationoftheexpectedvaluesofM&

Aenterprises.

2FinancialriskofM&

A

However,thereareevenmoreunsuccessfulM&

Atransactionsbehindtheseexcitingandsuccessfulones.Astudyshowsthat1200Standard&

PoorcompanieshavebeenconductingfrequentM&

Atransactionsinrecentyears,butalmost70%casesendedupasfailures.

TherearevariousfactorsthatleadtothefailuresofM&

Atransactions,suchasstrategy,cultureandfinance,amongwhichthefinancialfactoristhekeyone.ThesuccessorfailureoftheM&

Atransactionslargelydependsupontheeffectivenessoffinancialcontrolactivitiesduringtheprocess.AmongthebookstalkingaboutM&

A,however,mostfocusonsuccessfulexperiencebutfewonlessonsdrawnfromunsuccessfulones;

mostconcentrateonfinancialevaluationmethodsbutfewonfinancialriskcontrol.Therefore,theinnovationsofthisthesisliein:

theauthordoesnotjusttalkaboutfinancialcontrolingeneralterms,butratherspecifytheuniquefinancialrisksduringeachstepofM&

Atransaction;

theauthordigsintothefactorsinducingeachtypeofrisks,andthenproposesfeasiblemeasuresforriskpreventionandcontrol,basedonthefinancialaccountingpractices,andthecombinationofinternationalexperienceandnationalconditions.

Thethesisdevelopsinto3chapters.Chapter1defines"

A”andseveralrelatedwords,andthenlooksbackonthefiveM&

Awavesinwesternhistory.Chapter2talksabout3typesoffinancialrisksduringM&

Aprocessanddigsintofactorsinducingeachtypeofrisks.Chapter3proposesfeasiblemeasuresforriskpreventionandcontrol.Atthebeginningofchapter1,theauthordefinesM&

Aasfollows:

anadvancedformofpropertyrighttransaction,suchasonecompany（firm）acquiresoneormorecompanies（firms）,ortwoormorecompanies（firms）mergeasonecompany（firm）.TheaimofM&

Atransactionistocontrolthepropertyandbusinessoftheothercompany,bypurchasingallorpartofitsproperty（asset）.Inthefollowingparagraph,thethesiscomparesandcontrastsseveralrelatedwordswith"

A"

whicharemerger,acquisition,consolidationandtakeover.

Inthechapter1,theauthoralsointroducesthefiveM&

Awavesinwesternhistory.Suchwavesdramaticallychangedtheoutlookofworldeconomy,bymakingmanysmallandmiddle-sizedcompaniestobecomemultinationalcorporations.Therefore,acloselookatthisperiodoftimewouldhaveconstructiveinfluenceonourviewwiththeemergenceanddevelopmentofM&

Atransactions.AfteracomprehensivesurveyofM&

Ahistory,wefindthat,withthecapitalismdevelopment,M&

Atransactionspresenteddiversefeaturesandappliedquitedifferentmeansoffinancingandpayment,rangingfromcash,stocktoleveragedbuyout.Chapter2primarilydiscussesthedifferenttypesoffinancialrisksduringM&

A,aswellasfactorsinducingsuchrisks.

Accordingtothedefinitiongivenbythethesis,financialrisksduringM&

Aarethepossibilitiesoffinancialdistressorfinanciallossasaresultofdecision-makingactivities,includingpricing,financingandpayment.

BasedontheM&

Atransactionprocess,financialriskscanbegroupedinto3categories:

decision-makingrisksbeforeM&

A（Strategicrisk）,implementationrisksduringM&

A（Evaluationrisk,financingriskandpaymentrisk）andintegrationrisksafterM&

A.MaintasksandcharacteristicsineachstepofM&

Atransactionaredifferent,aswellastherisk-drivenfactors,whichinterrelateandactuponeachother.Consideringlimitedspace,theauthormainlydiscussestargetevaluationrisk,financingandpaymentrisk,andintegrationrisk.Inchapter2,thethesisquotesseveralunsuccessfulM&

Acasestoillustrate3differenttypesoffinancialrisksandrisk-drivenfactors.Targetevaluationriskisdefinedaspossiblefinanciallossincurredbyacquirerasaresultoftargetevaluationdeviation.Targetevaluationriskmaybecausedby:

theacquirer'

sexpectationdeviationforthefuturevalueandtimeoftargefsrevenue,pitfallsoffinancialstatements,distortionoftargefsstockprice,thedeviationofevaluationmethods,aswellasbackwardintermediaries.Financingandpaymentrisksmainlyreflectin:

liquidityrisk,creditriskcausedbydeterioratedcapitalstructure,financialgearing-inducedsolvencyrisk,dilutionofEPSandcontrolrights,etc.

Integrationrisksmostoftenpresentas:

financialinstitutionrisk,capitalmanagementriskandfinancialentityrisk.Chapter3concludescharactersoffinancialrisksthatmentionedabove,andthenproposesdetailedmeasuresforpreventingandcontrollingfinancialrisks.FinancialrisksduringM&

Aarecomprehensive,interrelated,preventable,anddynamic.Therefore,thecompanyshouldhaveawholepictureoftheserisks,andtakeproactivemeasurestocontrolthem.

Asfortargetevaluationriskcontrol,thethesissuggeststhat

（1）Improveinformationquality,morespecifically,conductfinancialduediligencesoastohavecomprehensiveknowledgeaboutthetarget;

properlyusefinancialstatements;

paycloseattentiontooff-balancesheetresource.

（2）Chooseappropriateevaluationmethodsaccordingtodifferentsituations,bycombiningothermethodstoimprovetheevaluationaccuracy.Meanwhile,theauthorpointsoutthat,inpracticetheevaluationmethodisonlyareferenceforpricenegotiation.Thetargetpriceisdeterminedbythebargainingpowerofbothsides,andinfluencedbyawealthoffactorssuchasexpectation,strategicplan,andexch