Reseach On The Listed Company Of Performance Commitment And Compensation In Enterprise M&A

M&A transactions have always been active in the capital market because of their high efficiency,maximization of corporate value,and mutual benefits.However,M&A transactions,while bringing high yields,will also bring certain risks due to the impact of M&A high premium rates.In the course of development of M&A activities,people have been exploring ways to effectively prevent and control risks.In recent years,in the Chinese M&A market,performance commitments and compensation agreements have been consistently promoted by companies,and they have both revised valuation premiums and motivated management.There is a good performance.After the performance compensation agreement was formally proposed in 2008,it gradually became an important tool for “conventional”among the companies in the M&A transaction.The signing agreement of the acquisition and purchaser protects its own interests.The signing of the agreement by the acquirer shows its confidence and achievement.The emboldened.However,the performance commitment agreement cannot be used once and for all,and it also has certain risks.In recent years,there have been many cases where the performance agreement could not be completed after the signing of the performance agreement,resulting in the failure of mergers and acquisitions.This article will discuss the advantages and disadvantages of the performance commitment agreement.Discusses how companies can best coordinate the relationship between risk and return in mergers and acquisitions.This article first reviews relevant literature on performance commitments and compensation agreements,sums up relevant theoretical research,and then elaborates on the concept and theoretical basis of performance commitment and compensation,and introduces the current status of application and compensation agreements on the M&A market.Thirdly,this article combines the case of Amgen's acquisition of Geely Technology,summarizing the basic situation of the merger and acquisition and the entire acquisition process,and detailed decomposition of the performance agreement signed by both parties to understand the causes of the unfulfilled performance promises and possible causes.,and from the perspective of different perspectives of mergers and acquisitions,consider what kind of compensation methods should be adopted after the performance commitments are not fulfilled,so as to provide reference and consideration for companies wishing to evade mergers and acquisitions risks by signing performance commitment agreements in future capital markets.Finally,the conclusions of the thesis are put forward,the deficiencies of this study are pointed out,and the research on future performance commitment is prospected.