M&A Mixex Payment Mode Used In Asser-Light High-TECH Companies

In recent years, as the Internet technology and the smart phones have been popular, the development of China’s mobile Internet industry has changed quickly. As the quick development of Internet industry, online game has been one of amusements. The global gaming industry trend toward lightweight, the fastest two industry segments of China’s online game industry are mobile terminals games and web games. Lightweight gaming market access threshold is low, so the competition is extremely intense; the game has short product life cycles makes the lightweight gaming market showing fragmentation, fast characteristics. These asset-light high-tech enterprises how to achieve sustained competitive advantage in a highly competitive market environment is an important issue enterprises facing. Under this market environment, M&A has become a powerful way for asset-light high-tech enterprises to maintain competitiveness. Through M&A, enterprises could acquire talent, technology and excellent game on the market, expand their product line, optimize the industrial structure, expand business scale and protect their competitive position.The payment method is the last part of M&A activity, choosing which kind of payment method will directly affect the success or failure of M & A, and even impact the integration and enterprise’s development after post-merger. Overall, China’s payment method is single, based on cash payment. In recent years, the number of mixed payment is gradually increased. In the age of knowledge economy, more and more enterprises transform traditional business model into asset-light operations. Compared with the traditional high-tech enterprises, asset-light enterprises pay more attention to talent, brands, customer resources and other assets. With the development of rapid economic, enterprise’s goal is meeting customer’s demand, the market shifted seller’s market to buyer’s market. Asset-light high-tech enterprises through a series of M&A activity to acquire more talent, brand to maintain their core competitiveness, expand development. In the M&A activity, the single stock payment method can’t meet the requirements of acquired company who want withdraw investment and the equity of existing shareholders will dilute, impact the control power over the controlling shareholder; the single cash payment will give enterprises bring pressure on cash flow, it is not conducive to post-merger integration and future investments. Therefore mixed payment method have been using in the M&A activity of high-tech enterprises, it is better able to avoid the disadvantages and risks associated with a single payment, allowing asset-light enterprises to better development.Based on the theory and the status quo analysis of payment method, choose the case of Ourpalm Co., Ltd. M&A Dovo Technology.Inc to analysis in depth. The paper concretely analysis the factors from both sides of M&A strategy objectives, financial situation, the controlling shareholder and actual controller attitude of the case, and the strengths and weaknesses of cash payment, stock payment and mixed payment, and the impact on the subsequent integration and development. Finally, based on the foregoing analysis of theory and the status quo, combined with the case Ourpalm Co., Ltd. M&A Dovo Technology.Inc, summed up in the following aspects business should be to avoid the risk of improper payments resulting from acquisitions:combine with its own development strategy development strategy to draw up the acquisition; maintain steady and good capital structure; rich payment and encourage mixed payment to avoid risks; focus on the importance of post-integration; rich payment method, encourage mixed payment to avoid risk; pay attention to the importance of post-integration-oriented; make full use of the financial intermediaries.