The Study Of The Causes Of High Premium M & A In IT Industry

2012 Ministry of Industry and Information Technology promulgated the "Software and Information Technology Services" Twelfth Five "Development Plan" to clarify the software and information technology services(IT industry)development ideas and development goals in the national policy support and government With great emphasis,the software and information technology services industry has grown rapidly.Since 2014,in order to better integrate the industry resources,software and information technology services industry set off a wave of mergers and acquisitions,most of the mergers and acquisitions case shows a significant feature is the higher valuation of the so-called high-premium mergers and acquisitions,The higher valuation of the value-added rate is often behind the huge risk,and therefore also aroused great concern about the high price of mergers and acquisitions.In this paper,we choose the case of Sunline acquisition and acquisition of Hedu Yuntian as a case study and hope that through the analysis of the case and then come to the causes of high premium mergers and acquisitions.In this paper,the study of high premium from the following five aspects: 1.From the perspective of industry characteristics of mergers and acquisitions premium.Software and information technology services in the national policy with the strong support of the future development of a huge space,the prospects are broad,the two sides of the industry's future development of the industry have a good expectation,it is easy to form a high premium acquisition.2.Analysis of M & A premiums from the perspective of goodwill accounting confirmation.Software and information services industry as a typical light asset management industry,the core value of enterprises reflected in its intangible assets can not be accurately measured,but these intangible assets are not reflected in the company's book,can not get the accounting confirmation,after the merger Corporate self-created goodwill will be displayed,thus reflected in the M & A price.3.See the acquisition premium from the perspective of asset valuation and pricing.The industry generally believes that the income law is more suitable for the assessment of the light assets industry,this assessment method is more focused on the future growth of enterprises and profitability,but the assessment did not take full account of the possible future risks,subjective,Resulting in an overvalued value.4.Analysis of M & A premiums from the perspective of synergies.The company and the company in the selection of the company when the company more attention to the synergies brought about after the merger,in order to successfully reach the transaction,it is willing to pay a higher consideration.5.Analyze M & A premiums from the choice of payment method.The choice of different payment methods to the merger and the cost of both the benefits are different,the two sides in the negotiations will also be different status,select the stock as a payment method is more likely to cause high premium.High-premium mergers and acquisitions may produce such as commitment to performance is not compliance,the main and the company goodwill substantial impairment,small and medium investors such as equity investment risk,in order to reduce or avoid the above risks,pricing rationality is essential,For the reasons for the formation of high premium made the following recommendations: 1.Relevant departments should strengthen supervision;2.Self-created goodwill to confirm the accounting;3.Improve and perfect the current assessment methods;4.Select the appropriate payment method.