Research On Financial Risk Of Mergers And Acquisitions Of Animation Enterprises

As one of the most potential emerging industries in China,animation industry is now becoming a new economic growth point.With the eastward trend of policy and the rapid popularization of the Internet,the animation industry began to grow.Among all the enterprises involved in animation,Aofei Entertainment has the strongest development.By learning the successful model of American Hasbro,we can develop animation works to stimulate the demand of its toy products,and take this opportunity to expand to other areas of the animation industry.Aofei Entertainment relies on the "animation + toys" business model to become the industry's leader,and formally listed on the Shenzhen Stock Exchange in 2009,becoming the first listed animation company.Afterwards,Aofei Entertainment carried out a series of expansion mergers and acquisitions.After Aofei Entertainment's expansion and acquisition,its profits dropped sharply,but it also faced enormous financing problems.This paper will study the financial risk of Aofei entertainment expansion M&A,hoping to help the animation enterprises in the expansion stage to raise risk awareness and formulate a complete expansion strategy.This paper is divided into six chapters.The first chapter is the introduction,which briefly expounds the research background,the meaning of the topic and the expected contributions and deficiencies.The second chapter is a literature review,briefly summarizing the theoretical literature related to the animation industry,enterprise expansion mergers and acquisitions,financial risks,and a brief review of the previous research.The third chapter is theoretical analysis,briefly expounds the theory related to the content of this article,including enterprise expansion and life cycle theory,diversification management theory,financial early warning theory,and enterprise merger and acquisition theory.The fourth chapter is the status quo and policy analysis of the domestic and international animation industry.Since the animation industry in the United States and Japan is relatively developed,it is necessary to analyze the current situation of the animation industry in the United States and Japan.After that,I will conduct an in-depth analysis of China's animation industry.Finally,from the macroscopic point of view,the factors affecting the development of China's animation industry are divided into two aspects: favorable factors and unfavorable factors.The fifth chapter is a case study of the expansion of M&A.Firstly,it briefly introduces the background of Aofei Entertainment,and then analyzes the internal and external motivations of Aofei Entertainment's choice of foreign investment.It reviewed its external expansion process from 2009 to 2017 after its listing.This paper divides its M&A process into three stages: start-up period,rapid development period and deceleration period.It introduces the important mergers and acquisitions of Aofei Entertainment in different periods,and summarizes the amount of foreign investment and long-term equity investment over the years.In the analysis of M&A results,this paper starts from management,performance and financial risks.In terms of operation and performance,from the perspectives of business diversification,enterprise scale,profitability,market value and goodwill,it was found that the implementation of Oufei Entertainment's diversification strategy was successful,scale growth,profitability first rise and then fall,market value cliff type It fell and the goodwill rose sharply.In terms of financial risk,this paper uses the univariate model(ie,from investment risk,financing risk,liquidity risk)and Altman's Z-score model to identify the financial risks arising from the different periods of the expansion of Aofei Entertainment.It was found that the acquisition of Oufei Entertainment and the occurrence of financial risks are related.Mergers and acquisitions have caused the Z value of Aofei Entertainment to fall sharply,and it is already in the gray area.The situation of financing risk and liquidity risk is more serious,and financial risks are intensified after mergers and acquisitions.At the end of this chapter,a summary of the case is presented,which outlines the reasons for the financial risks of the company.Finally,based on the above research conclusions,this paper puts forward relevant suggestions from two aspects of animation companies and policy regulators.The main contribution of this paper is: from the perspective of expansion and acquisition of animation industry,with Oufei Entertainment as the analysis object,the system has qualitatively and quantitatively analyzed the financial risks in the expansion and acquisition of animation enterprises.Due to the short time of animation companies,the related research focuses on the development of industrialization.The research in this paper has certain reference and reference for the expansion and acquisition of animation industry.Due to the limited research ability of the author,this paper does not conduct more empirical analysis.At the same time,it is impossible to obtain all the case company data in the data acquisition,which may lead to some deviation of the analysis.This is the shortcoming of this paper.