Research On The Risk And Control Strategy Of Aofei Entertainment Continuous Mergers And Acquisitions

With the enhancement of the strength of domestic enterprises and the integration and upgrading of industries,"mergers and acquisitions" is still a topic that will never fail in the development of enterprises.At the same time,more and more companies are rapidly expanding the scale of their businesses through the "unconventional" method of continuous mergers and acquisitions.Continuous mergers and acquisitions can help companies achieve "leapfrog" development within a certain period of time,but need to be viewed dialectically.An enterprise that rapidly expands its business scale in the short term is bound to face greater risks than an enterprise that implements ordinary mergers and acquisitions.As the "first stock of Chinese animation",Aofei Entertainment took the form of continuous mergers and acquisitions after going public,deeply immersed in the field of "pan-entertainment",in a short span of 7 years,the company's value has greatly increased.However,after a series of mergers and acquisitions,Aofei Entertainment has gradually exposed many problems.The most direct reflection of the problem is that Aofei Entertainment's net profit fell sharply in2018.This is after the accumulation of various risks in the process of continuous mergers and acquisitions.Focus on the results of the outbreak.This article will study the risks of Aofei Entertainment under continuous mergers and acquisitions,and how to deal with the risks arising from this rapid growth,to provide some reference and inspiration for future continuous mergers and acquisitions of other companies in the same industry.This article mainly uses case analysis to take Aofei Entertainment's main M & A events from 2010 to 2018 as an example,analyzes the risk of Aofei Entertainment's continuous mergers and acquisitions from different perspectives,and proposes risk control countermeasures.First,sort out the relevant research of domestic and foreign scholars on continuous mergers and acquisitions and risks;second,analyze the background of Aofei Entertainment and its industry,the motivations of Aofei Entertainment's continuous mergers and acquisitions,and the history of continuous mergers and acquisitions since listing;Identify and analyze the risks caused by financing payment methods,goodwill and post-merger integration,and use the Z-value model to assess the risk level;finally putforward risk control opinions and draw relevant conclusions.Through research and analysis,it is found that Aofei Entertainment is both radical and blind in the formulation and implementation of strategic goals,and the financing payment method mainly triggers the debt servicing risk and equity dilution risk of the enterprise.The excessively rapid growth of goodwill has accumulated a huge amount for the enterprise Impairment risk,and at the same time,rapid and large-scale mergers and acquisitions also bring great difficulties for the company's subsequent integration.Hidden risks caused by the ultra-high-speed investment and expansion of Aofei Entertainment have erupted one after another.If ignored,it will inevitably become a stumbling block for the long-term development of the enterprise in the future.Therefore,this article puts forward relevant countermeasures for the risk of continuous merger and acquisition of Aofei Entertainment.From the perspectives of strategy formulation,financing payment methods,goodwill management,and company integration,including analyzing the strategic situation,improving weak links in the industrial chain,planning financing scale and structure,innovating payment methods,improving the level of goodwill management,handling non-performing assets,and establishing Risk management system,etc.,to provide reference for Aofei Entertainment and other market participants in the same industry.