The Economic Effect Evaluation And Countermeasure Analysis Of New Culture On PDAL’s Gambling Mergers And Acquisitions

Due to the increasingly fierce competition in the capital market,listed companies usually adopt mergers and acquisitions to expand their business channels in order to enhance their competitiveness.However,China.com reported that the failure rate of Chinese mergers has exceeded 80%.In order to reduce the risk of M&A failure,VAM M&A came into being.The film industry has become a target industry favored by many companies due to its high yield and short payback period.Based on the fact that the film industry is an asset-light industry,investors generally use the income method to evaluate their M&A assets.However,there will be a certain difference between the valuation and the book value of the assets of the acquiree.Whether this part of the difference is consistent with the future earnings of the acquired company is a key factor to measure the success of the merger.Based on the above background,this paper firstly sorts out the existing literature and theories,and adopts the accounting research method,event research method,case study method and other evaluation methods to study the case of the new culture’s merger and acquisition of PDAL.Firstly,through the literature research method,it sorts out the motivation of signing the VAM agreement,the risk of the VAM agreement in the M&A activities and the economic effect of the VAM agreement in the M&A activity.Secondly,it expounds the case situation,and analyzes the motivation for the two to sign the VAM agreement from the perspective of the macro environment,the target company and the investor company.Thirdly,the economic effects of New Culture’s VAM mergers and acquisitions are analyzed from the perspectives of valuation,financial indicators and non-financial indicators,and it is concluded that: after the VAM mergers and acquisitions,the corporate performance of New Culture has not improved,but has been declining all the way.The reason for this phenomenon is the overvaluation of PDAL by the new culture.Finally,this paper studies the risk of signing a VAM agreement with New Culture,and puts forward suggestions for the high premium VAM mergers and acquisitions that exist in most film and television industries.New Culture’s failed VAM experience has sounded the alarm for other small and medium-sized enterprises in the film and television industry who want to conduct VAM mergers and acquisitions,and is of great significance to improving the success rate of VAM agreement implementation and promoting industry progress.