Research On Risk Identification,Evaluation And Prevention Of M&A In Chinese Cultural Enterprise

By the positive policy and upgrading of consumer demands, mergers and acquisitions (M & A) of our cultural enterprises have become normal. M & A are originally in order to optimize the production and management, and promote the upgrading of industrial, but in fact, only a few corporations can realize the above targets through M & A. At the same time, due to the characteristic of light asset in cultural enterprises, the premium of M & A is quite high and failure cases of M & A are too many to list, such as Panda Fireworks failing to merge Huahaishidai and Blue Focus emerging huge goodwill impairment. The reasons for the failures are very complicated too, such as the vague strategies, the violation of the laws, the low efficiency in integration, over-valuation of the target enterprise. But in essence, there is a lack of risk management consciousness in M & A. Therefore, how to effectively identify, evaluate and prevent the risk of M & A has important theoretical and practical significance for the subsequent acquisitions of cultural enterprises.For studying risk identification, evaluation and prevention of cultural enterprises, this paper uses two methods:theoretical research and case analysis. This paper firstly reviews the M & A risk research status at home and abroad, explains its basic theories, and summarizes the scope of cultural enterprises and their M & A characteristics. Secondly, on the basis of the case study Blue Focus merging Huntsworth, this paper identifies the M & A risks in strategy formulation, implementation and integration stage. Then, show the specific risks in this acquisition:fuzzy strategic target, inappropriate valuation in the downward pressure of economic, radical financing and payment policies, the target enterprise financial deterioration, and the lack of restrictive clauses for the core personnel. Thirdly, using fuzzy comprehensive evaluation (FCE) method, this paper orderly establishes a risk factor set and an evaluation set, introduces the expert scoring mechanism, and constructs the M & A risk assessment model for cultural enterprises. Then, by using the model, the article judges that this merger has high risk and the Blue Focus needs to be cautious. Finally, put forward some concrete measures for solving the above risks:(1) construct M & A risk internal control system for cultural enterprises and put it into practice; (2) set M & A strategy formulation for the enterprises’ long-term strategic and strengthen the attention of the environments; (3) make full use of due diligence to comprehensively evaluate the target enterprise, and by the same time, set corresponding contract terms to transfer and control risk; (4) adhere to the principle: "brands and businesses keep relatively independent, departments realize mutual integration, and products gradually integrate", and strengthen the integration of cultural enterprises.