Research On The Risk And Prevention Of Mergers And Acquisitions Bet In China’s Film And Television Industry

Since the 13 th five-year plan,because the adjustment of China’s industrial structure,the film and television industry has been thriving with the support of policies.More and more film and television enterprises have chosen to expand production through mergers and acquisitions.However,due to the particularity of the film and television industry "asset light" mode,high premium phenomenon of mergers and acquisitions become the norm,valuation adjustment mechanism(VAM)as tools to adjust the risk premium is widely used in recent years,but VAM is a principal-agent behavior,the characteristics of film and television industry earnings uncertainty also makes the high premium VAM contain huge risks.Under such a background,this paper,through rational analysis,selects the typical case of f Huayi brothers failed to acquire Dongyang Meira,discusses the risk of the VAM under the merger and acquisition of high premium,and puts forward the corresponding preventive Suggestions,thus sounding the alarm for the signing of high premium VAM in the merger and acquisition market of China’s film and television industry.Firstly,this paper expounds and summarizes the theory of VAM.Secondly,analyzes the status quo and characteristics of China’s film and television industry in merger and acquisition.Thirdly,according to the film and television industry’s characteristics,this paper discusses the risks that may be involved in signing the VAM under the merger and acquisition of high premium.Then,taking Huayi brothers’ acquisition of Dongyang Meira as a case,this paper analyzes the internal and external risks brought by the signing of the VAM under the acquisition of high premium,and expounds the history of Huayi brothers from the past leading enterprise to the present high debt.Finally,from the enterprise’s internal and external risks,give specific suggestions on how to prevent and control.In the cases selected in this paper,the VAM under the acquisition of high premium is full of risks,which brings indelible negative influence to Huayi brothers and finally;leads to the failure of the merger and acquisition.Through the theory and the case study of Huayi brothers,it can not only make the film and television industry look VAM more rationally,but also provide reference for maintaining the healthy order of the merger and acquisition market.