The Case Study Of Huayi Brothers M&A Yinhan Technology Of High-premium Mergers

The vigorous development of China's economy has led to the formation of supportive policies for some cultural industries,while in 2013 the cultural media industry was also the most exciting.In the middle of the year,there was a wave of mergers and acquisitions.According to the statistics of WIND database,from the beginning of 2013 to the end of August,there have been 38 m&a cases reported in the cultural industry,involving a total amount of about 413.10 billion yuan.Including mergers and acquisitions amount ranked top company huayi brothers,zhejiang newspaper media,borui spread,shenzhou tai yue,zhang boring technology,etc.,and the m&a event there is a common high premium.So this article mainly through to the cultural media industry is expected the root causes of high acquisition premium and motivation is analyzed,and summarized the development of travel industry mergers and acquisitions successful cases experience,for the cultural media industry of m&a deals in the future to lay the solid theoretical foundation and provide more feasible suggestion and scheme of mergers and acquisitions.This paper mainly analyzes the causes of the high M&A premium of M&A and the motivation of M&A premium mergers and acquisitions to explore the risk management and control of M&A premium,and studies the possible problems in M&A of cultural industries.Advise on risk management and control of mergers and acquisitions.In the case analysis,we first introduced the basic situation of M&A parties and the M&A transaction process,and introduced the merger and acquisition premium of Huayi Brothers' acquisition of Yinhan Technology and the signed gambling agreement,followed by the acquisition of Huayi Brothers from two perspectives.The origins of mergers and acquisitions premiums have been studied.First,from the perspective of goodwill,cultural industries are industries that are characterized by “light assets”.The core value of an enterprise derives from the intangible resources that are not controlled by enterprises and have physical forms.These intangible resources,such as self-created goodwill,cannot be accounted for and are therefore excluded from the financial statements.This is one of the reasons for the high premium for mergers and acquisitions in the cultural industry.Second,from the perspective of asset valuation,financial statements have certain limitations.Therefore,before the acquisition,the two parties to the merger and acquisition must determine the actual value of the company through asset evaluation.Since the value of M&A is based on the valuation value,from the perspective of asset valuation,the assessment of the value-added ratio has a non-negligible effect on the M&A premium rate,which is another major cause of the high M&A premium.Then the study on the high-level mergers and acquisitions of Huayi Brothers will be conducted in three levels:(1)analysis of the growth of the company itself;(2)analysis of the industry characteristics of the target company;(3)an in-depth analysis of the synergy effects of mergers and acquisitions.From the perspective of the acquirer,it is not only to appreciate the growth potential of the company itself and to be optimistic about the development prospects of its industry,but also to include the synergy effect of mergers and acquisitions that can be generated after the acquired company is acquired.Effect synergy,business synergy effects,and financial synergies.At the same time,the M&A party bravely assumes the high premium risk in the acquisition process because of a series of risk management measures such as the signing of gambling agreements,resource integration,management holdings,etc.,which are highly supported by the implementation of these measures.The risk of mergers and acquisitions is controlled within its own tolerance.